Mumbai: General Motors India said that it is planning to invest $200 million in Talegaon, Maharashtra to set up a powertrain facility.
The investment is in addition to $4300 million the company has already invested for making cars in the state.
“We cannot remain a global industry leader without a strong presence in the high-growth market of India,” said Karl Slym, General Motors India President and Managing Director after signing an agreement for the powertrain facility with the state government.
“This will enable us to capture more opportunities in one of the fastest-growing vehicle markets in the world. The company is also working on small-car project, which we will be launching in India next year,” Slym said.
“Our engineers are working on it in our Bangalore centre. The small car will be for the global market. GM’s small-car would not compete with Tata’s Nano,” he said.
The company has a production facility in Halol, Gujarat. The Halol facility can make up to 85,000 cars per annum where the company has invested Rs1,400 crore.
The powertrain facility would have an annual production capacity of 1.6 lakh engines with the capability of being expanded to 3 lakh engines.
“The expansion would require investments up to $800 million in the next seven years,” Slym said.
The total car production of GM would touch 2.25 lakhs per annum when the Talegaon facility goes on stream in the first quarter of 2010.
“The Talegaon facility would be used for domestic market consumption, but eventually exports would be done from this facility too,” he said.
“The work on the Talegaon facility for powertrain would begin immediately,” Slym said.
Both the powertrain and car manufacturing facilities in Talegaon would provide employment to 1,400 people.
Besides India, GM has invested in China, Korea and Russia.