Ford Motor has invested $1bn (£671.9bn, €911.3bn) in a new factory in India, its second facility in Asia's third-largest economy.
The new unit, located in western India, will help the automaker triple exports from the country, according to President and CEO Mark Fields.
Ford plans to make India an export hub for compact cars such as the EcoSport, a sub-four metre sports utility vehicle, and the recently launched Figo Aspire compact sedan, the first car to be produced at the new facility, reports said.
The new manufacturing facility in Gujarat will nearly double Ford's installed production capacity in India to 440,000 vehicles and 610,000 engines a year, Fields said.
With the new plant, the company will target a total of 50 export markets. At present, Ford India exports about 60,000 to 70,000 units annually to over 35 global markets from its Chennai facility, in southern India.
Fields said: "With manufacturing facilities in Chennai and Sanand, we expect to triple our exports from India in the next five years."
Ford India President and MD Nigel Harris said: "The new plant will not only help us grow business in India but would also help to make India as an export hub."
India is the fifth-largest producer of passenger cars the worldover.