GM commences work on second Indian plant

Our Corporate Bureau
21 November 2006

Talegaon: Executives from GM and officials from the Maharashtra government today laid the foundation stone of the company's new vehicle manufacturing facility at Talegaon near Mumbai, from where the company will manufacture a Chevrolet mini-car for the domestic market in the last quarter of 2008.

The company is also considering the possibility of setting up an engine and powertrain plant for its future expansion.

The project commencement follows the signing of a MoU between the Indian subsidiary of the world's largest automaker and the Maharashtra government on 3 August 2006, when the company said it planned to spend $300 million in the state.

This is the first major investment by a global auto major in the state in recent years, which is home to Indian automakers like Tata Motors, M&M, Bajaj Auto, Fiat, Skoda and Kinetic Engineering.

The $300 million Talegaon plant will have an initial annual production capacity of 140,000 vehicles and will help the company to meet its projected growth of 10 per cent by 2010, from 2.3 per cent currently. The company says it would employ 1,000 people at its 300 acre facility from the outset, and that the plant can be expanded in line with growing demand for its products.