It won't compete with Tata Motors' Nano, but Ford Motor Co. yesterday introduced its latest small car called the Figo and developed specifically for the lucrative and growing Indian small car market. 

About 70% of India's auto sales are in the small car segment and it has been getting more crowded with automakers such as Nissan, Volkswagen, Hyundai, Suzuki and Chevrolet all stepping up their interests in recent years and offering competition to domestic makers like Maruti Udyog and Tata.  Ford will position the Figo among the imports with both a gasoline model and a diesel-powered model.  The gasoline model will sell for 349,900 rupees, or about $7,600, while the diesel will sell for slightly more. 

Ford invested $500 million on its assembly plant located at Chennai.  In developing the site, Ford is reported to have installed leading auto manufacturing technology, including a state-of-the-art paint shop using a "three-wet-high solids" technology that delivers a glossy, high-quality, durable finish that is eco-friendly to employ.  The site also includes a new testing facility with a 3.2 km circuit that simulates typical Indian road conditions, which are often most unfavorable.  Ford also has an engine plant in India with capacity to assemble 250,000 engines annually, although Ford has not made a forecast on how many units of the Figo it hopes to sell in India.