Chennai, Sep 3 - Ford India Pvt Ltd's proposed small car will be fitted with 1.2 litre petrol and 1.5 litre diesel engines in order to satisfy the Indian government's definition of a small car, company officials said Thursday.

The proposed small car will have 85 percent local content.

'We are negotiating with Tata Steel for getting better price for the steel, given our increased volumes,' Michael Boneham, president and MD of the Ford India, told reporters.

The company had earlier imported the steel blankets - cut steel sheets - from its sister plant in Thailand.

Ford India has increased its vendor base by 30 to 180. Boneham said the policy is to have multiple vendors for most of the components and go in for a single vendor for some critical items.

The company has installed 92 robots for fast and precision work in view of the increased volumes.

Speaking about the new paint process, vice president manufacturing Tom S. Chackalackal said the Indian plant will be Ford's first volume plant to introduce three wet high solid process that gives high gloss finish and in the process save painting overheads.