General Motors is reported to be building a second assembly plant in India as it steps up the pace to take 10% of the country’s fast-expanding market for passenger vehicles by 2010.
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State and company officials were expected to sign a formal agreement on Thursday evening, according to a media invitation seen by the Reuters news agency. It said the factory, to be located in the western state of Maharashtra, would have a capacity of more than 100,000 units and would require an investment of about INR20-22bn rupees ($US428-$471million), according to industry sources.
A company spokesman reportedly declined to comment.
The news agency said GM, which is increasing capacity at its existing plant in Halol in western Gujarat state to 85,000 units from 60,000, plans to launch the Chevrolet [GM-Daewoo-designed] Spark in India in the first half of 2007.
GM has said it would either retool its Halol plant or set up a new plant to make the small car after it gave up a bid for Daewoo’s car unit in India last year.
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By GlobalDataGM has invested about 14 billion rupees in India so far, Reuters noted, where it makes the [GM-Daewoo] Chevrolet Aveo sedan, the locally-designed Chevrolet Tavera multi-utility vehicle, the [GM-Daewoo] Optra sedan, [Opel-designed Corsa and Corsa Sail [a GM Brazil designed sedan derivative of the first-generation Opel Corsa made also in Brazil and China], and expects to sell 50,000 units in 2006.
India’s passenger vehicle market is forecast to nearly double to 2m units by 2010, Reuters added.
The small car segment, which accounts for over two-thirds of the market, is now dominated by Suzuki Motor’s Indian arm, Maruti Udyog and Hyundai Motor.
Both have designated their Indian units as ‘export hubs’ for their Alto and Atos/Amica small car model lines.
The third-biggest Indian car maker, Tata Motors, last month said it would build cars, engines and transmissions in a joint venture with Fiat, Reuters noted.
