GM to invest $300 mln for manufacturing unit in Maharashtra

New Delhi, Aug 3 (UNI) General Motors will set up its second vehicle manufacturing facility in Maharashtra with an investment of 300 million dollars.

The new unit will have an initial annual production capacity of 140,000 vehicles per year, with the capability of significant expansion as the market demands.

The manufacturing facility will more than double GM's annual manufacturing capacity in India to in excess of 220,000 vehicles.

''The new facility at Talegaon 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 build-up 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.

GM India President and Managing Director Rajeev Chaba said the company chose Maharashtra as the site of their new manufacturing facility largely because of its outstanding logistics and the proactive approach taken by the state government.

An agreement in this regard was signed here today by General Motors India President and Managing Director Rajeev Chaba and Maharashtra Secretary (Industries) V K Jairath in the presence of the Maharashtra Chief Minister Vilasrao Deshmukh.

''The presence of GM reaffirms Maharashtra as a leading investment destination. It will encourage other multinational and Indian companies to consider Maharashtra for their ventures,''Mr Deshmukh said.

Construction of the 120-hectare facility will begin at the end of this month and 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.

The Talegaon facility will complement GM's existing production facility in Halol, Vadodara, which assembles the Chevrolet Tavera, Optra, the Optra Hatchback and the Aveo for sale in India.

In addition, the GM India Technical Center in Bangalore is carrying out engineering, research and development activities for GM on a local, regional and global basis.

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