Ford to invest $1 billion in India as it expands into country's hot car market

Global automakers have been announcing their plans recently to pursue international growth as a means of increasing sales. According to a published report, Ford Motor Company plans to invest more than $1 billion in India to ramp up production in the emerging economy. 

The New York Times reports that Ford will invest the money to build factories in the northwest region of the country. According to the news provider, the Detroit-based automaker hopes to produce more than 225,000 cars in the country per year once it has expanded its manufacturing capacity.

The strategic sourcing of suppliers and a focus on business cost reductions has led many carmakers to more aggressively pursue growth in the so-called BRIC economies of Brazil, Russia, India and China. While it nearly collapsed nearly two years ago, Ford has roared back on the strength of its small cars to become one of the globe's most profitable automakers.

Car sales surged 29 percent in India in 2010 to 2.5 million vehicles and many industry experts assert that the country will become a critical market for automakers over the course of the next decade.