Ford India on Thursday said it will commence production of four-wheelers at the new facility in 2014 for manufacturing engines and vehicles at Sanand.
The unit is being set up with an investment of $1 billion (nearly Rs 5,000 crore).
The company is setting up the new plant in 460 acres.
It will have an initial installed capacity to manufacture 2.70 lakh engines and 2.40 lakh vehicles a year, said Mr Michael Boneham, President and Managing Director, Ford India, after laying the foundation stone to mark inauguration of construction work.
The Gujarat Government has allotted another 150 acres to Ford India for suppliers. The company has attracted 19 world-class supplier manufacturers to date, he said.
The Sanand plant, when completed, will generate about 5,000 direct jobs, and indirect employment for many more people.
Figo to 50 nations
Mr Boneham said the company has until now committed investments of $2 billion (Rs 10,000 crore) at the Chennai and Sanand facilities.
Ford India will bring eight new vehicles to India by mid-decade, the first one being the all-new Fiesta, launched in July 2011. The Figo is being currently shipped to more than 33 countries and will eventually be exported to 50 international markets, he added.
Sharing vendors
Ford India will also consider synergies with common vendors supplying to neighbours like Tata Motors and Peugeot at Sanand to bring down the costs.
About the Chennai plant, he said the expansion of the powertrain facility to support sales and exports will be completed in mid-2012.
With this, the engine plant's annual production capacity will increase from 2.50 lakh to 3.40 lakh a year.