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.

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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.

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