Ford India Hopes To Break Even Next Fiscal

Hyderabad, Sept 18: | Updated: Sep 19 2003, 05:30am hrs
Eight years after investing Rs 1,700 crore, Ford India Ltd is all set to break even next fiscal. According to David Friedman, managing director and president, Ford India, the company is expected to come out of red next year and may even make some profits after utilising the full capacity at the Maraimalai Nagar plant near Chennai.

We propose to introduce new models into the market in the next 12 to 24 months and continue to expand our operations in Indian market, Mr Friedman said.

The company anticipates doubling its sales in the next year. While the company is selling about 20,000 vehicles in the domestic market, it is exporting the similar number of vehicles to South Africa, Mexico, Brazil apart from sending components to China.

Ford Motor Company had established a joint venture with Mahindra & Mahindra, in November 1995, to assemble and distribute its first market offering in India, Ford Escort.

Later in February 1999 it had changed its name to Ford India Ltd increasing its holding to majority. The present Ford holds 85 per cent of the equity in the company. Mr Friedman said that the company is in a position to invest the incremental investment required for launching new models.