"There is double-digit growth in many markets in this region," Ford said. "India is a market that is critical to our plans to move Ford into the 21st century. It is one of the fastest-growing markets and is top priority for us."
The Detroit-based car maker's Indian subsidiary, opened a decade ago, assembles the Ikon sedan, the mid-sized Fusion and Endeavour sports utility vehicles at its plant outside the southern city of Chennai. It imports fully built Mondeo sedans.
Ford sold 27,064 vehicles in India in 2004 and exported nearly 24,000 Ikons to South Africa and Latin America. It added a second shift at its plant last year to nearly double capacity to 50,000 units, which could rise to 100,000 if required.
Ford did not specify the investment planned for Asia's third largest economy, but said funds were not a constraint despite a $284 million third quarter loss and declining US market share.
"The financial health of Ford Motor Co is not a constraint. We are a family company, and as such we take a very long view of things," Ford said. "We have a tremendous amount of cash and we are going to be profitable again this year."
At the Indian launch of its mid-sized Fiesta, Ford said he hoped the car would help boost market share from about 5 percent now as India's market grows 10 percent a year in the medium term.
Ford competes with market leader Maruti Udyog Ltd, 54.2 percent owned by Japan's Suzuki Motor Co, Hyundai Motor Co, General Motors Corp, Toyota Motor Corp and local firm Tata Motors Ltd.