Ford to enter India

Ford to enter India

BOMBAY (AFP): Indian jeep maker Mahindra and Mahindra Ltd., yesterday announced that its tie-up with US auto giant Ford Motor Co. would begin commercial production of passenger cars in India in May next year.

"It is expected that the initial manufacturing operations are likely to commence in May 1996," company chairman Keshub Mahindra told shareholders at the 49th annual general meeting here.

Mahindra said the joint venture, which is yet to receive formal approval from the Foreign Investment Promotion Board and other authorities, planned to begin production of two passenger car models -- the Escort and the Fiesta.

The initial capacity would be 100,000 cars every year, he said.

"The estimated range of the project cost is in the neighborhood of a little over 20 billion rupees (US$625 million)," Mahindra said.