General Motors to invest $200-mn in Pune engine plant

Mumbai: General Motors India is setting up an engine plant in Talegaon, Pune, near its car plant.

The initial investment for the powertrain facility will exceed $200 million (Rs 874 crore). The engine plant will have an annual production capacity of 1,60,000, and it can be ramped up to three lakh engines a year.

The GM India President and Managing Director, Mr Karl Slym, and the Principal Secretary (Industries), Government of Maharashtra, Mr A.M. Khan, signed the MoU in the presence of the Chief Minister , Mr Vilasrao Deshmukh.

This is in addition to $300 million the company has invested for the car manufacturing plant in the same location. “With the investment in powertrain facility, GM’s total investment in India will be $1 billion,” said Mr Slym. He said that the production of engines will begin in 2010.

GM’s car manufacturing plant in Talegaon with an annual capacity of 1.4 lakh units, which is mainly meant for small cars, will be commissioned on September 2. This will take GM’s total production capacity to 2.25 lakh. In addition to the Talegaon plant, GM has a plant in Halol, Gujarat, and a design centre in Bangalore.

Mr Slym has reiterated that GM will launch two “brand-new small cars” in India in 2009. He did not divulge details including price and name of the cars. “They will be global cars. They will take specific requirements of the Indian market,” he said.

He also said that GM has no plans to take on Nano. He added that GM’s bio diesel-run car for India is under testing.

Mr Khan said that GM would invest $700 million in seven years.