American car major Ford today said it will increase vehicle production in India by over 30 per cent from this month to meet increased demand in the upcoming festival season.

"We have been producing about 130 vehicles a day but this will be increased to 174 vehicles a day this month," Ford India President and MD Michael Boneham told reporters here.

Also Read   Related Stories News Now - Chennai needs Rs 2,000 crore to rehabilitate slum dwellers - Toyota, Honda face famine after feast - Ford India expands Chennai factory capacity - Manufacturing growth slowest since April - Oxford's plan for overseas campus in land-grab row - Oxford's plan for overseas campus in India into land-grab row

Also Read   Related Stories News Now - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report More

The company today launched an advanced version of sports utility vehicle Endeavour, priced between Rs 15.99 lakh and 17.99 lakh (ex-showroom, New Delhi).

Boneham, however, said the company expects its overall vehicles sales in 2009 to remain more or less similar that in the last year at around 31,000 units.

"While things are improving, we also need to be a bit cautious ... While the Indian government has done a good job to boost the auto sector, issue like extra Rs 15,000 duty on big cars need to be addressed," he said.

Ford India last year announced a $500 million investment plan spanning over three years to expand its manufacturing facility, setting up of a new diesel engine plant and also on new product development, including a small car for the Indian car market.

The company has an installed production capacity of 1,00,000 units at its Chennai plant, which will be expanded to 2,00,000 units.

Boneham said the company would start exporting both petrol and diesel engines to markets, including the ASEAN countries, once the new plant come up by early 2010.

He said Ford's new small car would be launched during the first half of next year and planned to start exporting the product by the end of 2010.

Ford India is also expanding its dealerships in smaller cities this year.

"We will set up 20 more outlets this year, especially in Tier-III cities and few in Tier I cities ... Currently we have 137 outlets," Ford India Executive Director (Marketing, Sales and Service) Nigel Wark said.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report

Tags : Ford | Endeavour | sports utility vehicle | auto industry   Read Business news in  Advertisements -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  The Best Seller is Also the No. 1 in Mileage. Click here -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More