Last Updated: 5/21/2025 11:39:00 PM
India, a major base for exporting small cars, is becoming a pre-ferred hub for some global auto makers to develop and source compact engines. Ford Motors Co, which exports its Figo small car and EcoSport compact sport-utility vehicle from India, plans to source a new generation of small-capacity petrol engines, called Dragon, from its local unit. Auto makers are looking at frugal technologies because of changing customer preference towards lower-priced vehicles. Though sales have been hit by a slowdown in the economy, India is a major market for auto companies who are building new capacities here, especially to manufacture small cars that account for most of the local sales. For these companies, leveraging the manufacturing capacity in India to meet export demand helps keep costs low. The cost advantage of India over other markets remains strong, and it (manufacturing in India) is a good 30% more cost effective than a matured base of Europe. Source : Economic Times
