Ford Motor Co. president Alan Mulally, left, and Ford India president Michael Boneham show off the Figo, the low-cost compact car the company will make and sell in India starting early next year. (Gurinder Osan/Associated Press)

Ford Motor Co. unveiled a made-in-India compact car as well as plans to expand production in China as it seeks to boost sales in Asia, a region the U.S. automaker has hardly dented but on which it is counting to drive growth.

The four-door "Figo," which is Italian slang for "cool," will go on sale in India during the first quarter of next year, Ford executives told a news conference Wednesday. There are also plans to export the low-cost car to other Asian countries.

The automaker declined to reveal the Figo's sale price and initial production volumes. One analyst said he expects the Figo to sell for 300,000 to 400,000 rupees ($6,700 to $8,900), putting it in competition with several other compact models, including the high-end Tata Nano, which sells for the equivalent of $5,600 to $12,300.

The Figo represents a change of gear for U.S. automakers, which have been slow to penetrate India's small but fast-growing car market but are now increasingly chasing growth in Asia.

"This new car will be a game changer," said Michael Boneham, president of Ford India. "It will give us muscle in the heart of the Indian market."

Ford chief executive Alan Mulally said he expects a third of global car sales to come from Asia in 20 years, a third from the Americas and a third from Europe and Russia.

The company has a lot of catching up to do in Asia. Ford, the only major U.S. automaker to survive the financial crisis without a taxpayer bailout, has about 15 per cent market share in North America, 10 per cent in Europe and just two per cent in Asia.

Executives said they would make an announcement later this week about ramping up Ford's China production capacity, currently at 450,000 vehicles a year. They wouldn't confirm reports the automaker will open a third assembly plant in China.

The Figo is the first fruit of a $500-million India investment Ford announced last year. That money will also be used to double production at its factory in the southern city of Chennai, to 200,000 vehicles a year, and raise engine production to 250,000 a year. The expansion is part of Ford's effort to transform India into a small-car production and export hub — a strategy that Hyundai, India's largest car exporter, has excelled at.

India's auto industry was quick to emerge from the global downturn. Sales began to recover in February, and so far this fiscal year, from April through August, car sales have risen 13.5 per cent over last year.