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Ford & Renault Look To Turn India Into Engine Manufacturing Hub
After making India as the major export base for its EcoSport compact SUV, American manufacturer Ford is next planning to utilise its facilities in the country to develop and manufacture engines. The said new small capacity engine will be mostly utilised by local models, but will also be exported to countries where these models are sold.
According to ET sources, Ford's new small capacity engine is codenamed ‘Dragon' and it is relying extensively on its Indian research and development team for its development. The locally developed and manufactured engine is likely to be ready for production by 2016-17.
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The Dragon engine will reportedly come in 1.2 liter and 1.5 liter capacities and initial production capacity will be 1.5 million units annually. These engine units will be produced in Ford's soon to be operational facility in Sanand, which will be the lead producer. Besides India, these engines will also be manufactured in Europe, Russia, Brazil and China.
Besides Ford, Renault is also reportedly developing a 986cc petrol engine, code named B4D. The 1.0 liter class engine is being developed in collaboration with the automaker's R&D facilities in Brazil and Europe.
The Renault B4D engine will be a modified and updated version of an existing 0.8 liter engine and will be ready for production during the 2015-26 time period.
The ever growing demand for small cars in India earlier resulted in global automakers setting up local manufacturing facilities. This eventually led to India becoming a global export hub for these small cars. The sustained local demand has meant that automakers are now viewing India as a stable production hub for critical parts such as engines.
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