The US automobile giant Ford Motor Co proposes to launch its small car for the Indian market by 2010 and will set up a new unit soon to manufacture engines, top officials said on Thursday.

“Small car segment holds 75 per cent in Indian market and when we launch the small car that’s when the real volumes will come in,” Ford India managing director and president Michael Boneham told media at the launch of the company’s new car.

He also said Ford’s new engine manufacturing facility will be set up in 2009-10 with a capacity of 250,000 units per year. “The plant will fulfill the entire domestic demand and will also cater to the needs for ford in the Asia Pacific region.”

The company also launched a new sports variant of the mid-sized sedan here Thursday - the Ford Fiesta S that clocks 0-100 km in 11 seconds. Also launched was an upgraded SXI variant of the Fiesta featuring new front grille and head lamps.