With the Indian car market booming, Ford is planning to set up a second plant and has approached the Gujarat government for land.
Ford which has announced eight new models for India by 2015, has been suggested a site near Sanand, where Tata Motors also has its factory for Nano, by Gujarat state government officials
Ford would be the third major auto company to enter Gujarat after General Motors and Tata Motors.
A source said the company also wants to “de-risk” its business by moving out of the Chennai region, which is facing labour union problems.
Gujarat government has invited officials of Ford India for a meeting in Hyderabad on the sidelines of its roadshow on December 3.