General Motors India, on Thursday said it plans to invest USD 200-million in Talegaon, Maharashtra, to set up a powertrain facility.
MUMBAI: General Motors India, on Thursday said it plans to invest USD 200-million in Talegaon, Maharashtra, to set up a powertrain facility.
This investment is in addition to USD 300-million the company has already invested for making cars in Talegaon, Maharashtra.
"We cannot remain a global industry leader without a strong presence in the high-growth market of India," General Motors India President and Managing Director, Karl Slym, said here after signing the agreement for the powertrain facility with the Maharashtra Government.
"This will enable us to capture more opportunities in one of the fastest-growing vehicle markets in the world," he said.
The company is working on a small car, which it plans to launch in 2009. "We will be launching a small car 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," he said. 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 upto 85,000 cars per annum where the company has invested Rs 1,400 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 to 3-lakh engines would require investments up to USD 800-million in the next seven years, Slym said.
A powertrain refers to a group of components that generate power and deliver it to the road surface, water or air. This includes engine, transmission and drive shaft.
The total car production of GM would touch 2.25-lakhs per annum when Talegaon facility goes on stream in Q1 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.
The auto major makes the Tavera, Optra, Aveo, Aveo U-VA, SRV, Spark and Captiva for the Indian market.
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