Leading carmaker Ford India has zeroed in on 400 acres of land in Sanand taluka near here to set up its second manufacturing plant, official sources said today.
Ford India's proposed site is located next to Tata Nano's plant. The process of earmarking the land to the US auto giant has got underway, they said.
"Ford has been in discussion with the Gujarat government for setting up a manufacturing plant at an investment of nearly Rs 5,000 crore. It has now closed in on 400 acres of land in Sanand for the facility," the state government officials told PTI.
The district collector of Ahmedabad has got a request from the state government to earmark 400 acres of land in Sanand, nearly 40 km from here, for Ford India, they said.
Ford has been weighing various options to set up its second manufacturing plant in India as it gears up to launch eight new models in one of the world's fastest-growing car markets.
In August last year, Ford had announced to launch eight new models in India by 2015 in a bid to tap the burgeoning domestic car market.
The introduction of the new vehicles would be part of the company's plan to bring more products from its global portfolio and other Asia Pacific and African markets.
The company has already invested $500 million to expand production capacity to 2 lakh units annually at its Chennai facility. It also has an engine manufacturing plant with an installed annual production capacity of 2.5 lakh units.