Ford has announced expansion plans for its India automobile operations.

Ford, a global automotive company, has announced a US$500 million Indian expansion plan that will include the creation of a new engine manufacturing plant and the development of its small-car manufacturing facility – generating more than 9,000 jobs.

This expansion is the company’s third major announcement in the last six months from the Asia Pacific and Africa regions, and will bring Ford’s total financial commitment in India to more than $875m.

Arvind Mathew, President and Managing Director of Ford India, said: “Our investment plan clearly signals Ford’s intent to implement an aggressive and comprehensive growth strategy for the India market. Reaching volume production of vehicles and engines will not only allow us to participate in the future growth of India’s auto industry, but really to help drive it, both in terms of domestic sale and export potential.”

The expansion will affect many areas of the business. The first batch of diesel engines is scheduled for April 2008 and will be used in the production of Fusion and Fiesta cars. The first engines from the newly-created engine manufacturing facility will come off the line in 2010. Small-car production will increase Ford’s annual production at the plant to 200,000 units by 2010.