Ford increases vendor base

As part of its ongoing efforts to increase localisation levels in its cars, Ford India has widened its local vendor base. Following the launch of its engine plant in April 2008, the company has achieved higher local content in its cars. This in turn helped it to reduce costs, since the entire engine block and crankshaft were now made and assembled locally.

Ford has now begun sourcing aluminium engine blocks from Jai Hind Industries based in Pune. This is the first time an automaker based in India is procuring aluminium engine blocks from an external supplier. Earlier, Ford India was importing its requirement of engine blocks from Europe. With support from Ford, Jai Hind Industries has developed a complex four-cylinder aluminium engine block casting. This is made using a sophisticated high- pressure casting process that helps to lower weight.

With the broadening of its local vendor base, Ford’s Ikon saloon model has now reached 90 per cent localisation levels, while the Fiesta has over 80 per cent local content in its diesel version.

Ford plans to launch a B-segment hatch model next year that would help it to boost volumes substantially in the Indian market. The current localisation efforts are part of the company's strategy to price this new model very competitively.