GM to invest $300m for 2nd car plant in India
Pti, Mumbai
American car major General Motors Corp. has said it would invest over 300 million dollars (nearly Rs 1,380 crore) in Maharashtra to set up its second manufacturing unit in India that would double its existing capacity.The company has signed an agreement with the state government, which will see General Motors India develop a new unit at Talegaon, near Pune with an initial annual production capacity of 140,000 vehicles per year. The investment in the plant, which will employ more than 1,000 people at the outset, will be over 300 million dollars. The agreement was signed Thursday by General Motors India President and Managing Director Rajeev Chaba and Maharashtra Secretary (Industries) VK Jairath in the presence of Chief Minister Vilasrao Deshmukh. "The Talegaon facility is a sign of GM's commitment to India," said GM Asia-Pacific President Nick Reilly. "Our new facility will enable us to continue the rapid buildup of our presence in one of the fastest growing and potentially largest markets in the world. We cannot remain a global industry leader without a strong presence in high-growth vehicle markets around the world like India," he added. The GM manufacturing facility at Talegaon will more than double GM's annual manufacturing capacity in India to in excess of 220,000 vehicles. Construction of the 120-hectare facility will begin at the end of this month. It is expected to be completed within 20 months, with start of production scheduled for the third quarter of 2008. GM will initially manufacture a mini-car in Talegaon for the domestic market.
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