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Mayur N. Shah

Mumbai , Nov. 24

Ford India plans to make its forthcoming diesel engine plant a hub for outsourcing Duratorq range of diesel engines in the Asia Pacific region.

According to company officials, the company will manufacture the Duratorq range of diesel engines (1.4-litre, 1.6L, 1.8L, 2.0L, 2.2L, 2.4L 2.5L and 3.5L) in this plant in a phase manner. However, the company spokesperson said there were no plans of such development. The plant that will have a 100,000-unit production capacity will initially cater to the local consumption of the 1.4L Duratorq diesel engine.

Production capacity

The production capacity of the plant is a clear indicator that the company is set to build the plant for export purposes too. Considering the current market share of its existing product range (Fiesta) and forthcoming product launches like the Fusion diesel model, the capacity can easily cater to domestic supply and supplement other export orders in the pipeline. As of now, the company has sold 70 per cent (26,600 units) diesel variants of the total 38,000 Fiestas in the local market.

Ford has various operations in the Asia Pacific region in countries such as Australia, China, the Philippines and Taiwan where the Duratorq range of diesel engines can being used in models, like the Ford Falcon, Ford Fiesta, Ford Mondeo and Mazda3 (Ford owns Mazda). The Duratorq range was developed in conjunction with Peugeot Citroen, France. Hence, it could be a possibility that the French company may outsource the engine range for its global market.

Price cuts?

The company's plans to set up an engine plant in India calls for a possible price reduction in its existing and forthcoming range of diesel models. It has been successful in indigenisation of engines through its existing agreement with Hindustan Motors (the company outsources petrol engines from the local partner), thus passing off the benefit to the customer (reduction in Ford Ikon price by Rs 50,000), and now plans to reap the benefit of indigenisation of diesel engines in particular due to the growing demand for diesel models in the local market as well as the export market.

More Stories on : New Projects | Cars | Outsourcing

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