Ford to launch new car in India

The four-door compact car will compete in India's small car sector

Ford has announced that it is to make a new car in India, as part of its $500m (£304m) investment plan in the country.

Production will begin on the Ford Figo at the carmaker's plant in Chennai in the first quarter of 2010.

Ford has described the Figo - which is Italian slang for "cool" - as a "game changer" and said it was confident it would be popular with Indian consumers.

The Figo will compete in India's small car segment, which makes up about 70% of the new vehicle market.

The car will initially only be for sale in India, but there are plans to export it to other countries, Ford said.

In April, the world's cheapest car, the Tata Nano, went on sale in India. The Nano is 10 feet (3 metres) long.

"[The Figo] reflects our commitment to compete with great products in all segments of this car market," said Ford president and chief executive Alan Mulally.

"We are confident the Ford Figo will be a product that Indian consumers really want and value."