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Hyderabad , Sept. 18

FORD India, the Indian subsidiary of global automobile major, Ford Motor Company, expects to record breakeven during the next fiscal, according to the Ford India President and Managing Director, Mr David Friedman.

The Indian subsidiary has so far invested around Rs 1,700 crore in its modern integrated manufacturing facility at Maraimalai Nagar near Chennai and for other infrastructure in the subcontinent.

Responding to queries of newspersons on the investment plans of the automobile major, he said, "The bulk of the investments were already made for building the manufacturing facility and setting up the dealer and client networks. The foundation is already in place. The incremental amount required to bring in additional models is not significant."

Mr Friedman was addressing presspersons here on Thursday for announcing the alliance of Ford India with Union Bank of India for car financing. Stating that Ford India was cash flow positive, he said: "We expect to breakeven in the next fiscal year."

Declining to divulge details on the new launches, Mr Friedman said: "We are actively preparing to launch new models into the Indian market. You will see more activity from Ford in the coming months."

Ford currently sells approximately 20,000 vehicles in India, with similar number of vehicles exported. Ford India has emerged as the country's largest auto exporter. In the next five years, Ford expects the Indian automobile market to grow more than double in size. "We expect Ford India to get its fair share in the Indian automobile market," Mr Friedman said.

Stating that the Chennai facility has a total capacity to make about 50,000 vehicles, he said it leaves plenty of room to expand production levels. Ford India plans to bring in more models into India to enhance the capacity utilisation.

As against 30 per cent of components imported earlier, Ford India is currently depending on imports only for around 10 per cent of components and the balance 90 per cent were indigenous. "This has helped Ford India to save costs significantly and pass on the benefits to its customers," Mr David Friedman said.

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