In my book, Doing Business in 21st Century India, published in 2008, I wrote how Korea’s Hyundai Motor Company was making cars in the southern Indian city of Chennai and selling them not only in South Asia but also in Africa and even Europe.

The Financial Times reports that today, even America’s Ford Motor Company is following that example with the success of its recently introduced Figo small car. Joe Hinrichs, head of Ford’s Asia-Pacific and Africa operations said that cars based on the Figo chassis would be exported to over 50 countries during the next five years. The Figo is one of several small models – also including Volkswagen’s Polo and the Nissan Micra – that have sharply boosted car sales in India this year.

Ford unveiled a $500m plan last September to double capacity of its assembly plant in Chennai and to build a new engine plant.

While China is now the world’s largest automobile market, the largest increases in unit sales in 2010 may well come from India.  A strong automotive supply chain drives overall manufacturing capability so continue to watch for multiplier effects for the next several years.