Date:10/06/2006 URL: http://www.thehindubusinessline.com/2006/06/10/stories/2006061002030200.htm

Back GM likely to set up new plant in Maharashtra

K. Giriprakash

Shortlisting models for production in India

Future plans
Plant likely to be located in Talegaon, Maharashtra
New plant will manufacture a range of vehicles and will also serve as an export hub
Small car Chevvy Spark to be produced in new plant

Bangalore , June 9

General Motors is zeroing in on Talegaon in Maharashtra to set up its new greenfield plant as the auto maker targets to sell 2 lakh units before 2010.

Sources close to the auto maker told Business Line that during the last fortnight General Motors' top brass and Maharashtra Government officials held a series of meetings to sort out several issues including power tariff and concessions the Government is likely to give to the company. A team from General Motors had earlier visited Talegaon to carry out soil testing of the site where the plant is expected to be located.

The General Motors President, Mr Rajeev Chaba, said the company will not be able to comment on its plans. "As a policy we do not comment on our future plans," he said.

General Motors was also considering Tamil Nadu to set up its new plant but the company is learnt to be more keen on Maharashtra to locate its second plant. The decision to set up a new plant was taken after General Motors decided not to pursue its plans to take over the Daewoo plant near Delhi as a debt settlement with lenders failed to materialise.

The new plant will manufacture a range of vehicles and will also serve as an export hub for the company. Once the new plant is operational, the production of small car, Chevvy Spark will be shifted there.

A team from the company is already working on short-listing the models, which will be manufactured out of the new plant.

The company will source the models from the global portfolio of GM Daewoo Auto & Technology Company based out of South Korea.

Sources said there are no plans to increase the capacity of the Halol plant once it reaches 85,000 units annually.

General Motors has already invested around Rs 1,200 crore in the existing plant and an additional Rs 100 crore is being invested for the Aveo model and for capacity ramp up from 65,000 units to 85,000 units.

For 2006, GM has set itself a target of manufacturing 50,000 units, which include, 20,000 units of Tavera and Aveo and 10,000 units of Optra.

In 2005, it manufactured 30,000 vehicles.