GM to invest $200 mln in India engine plant

By Rina Chandran

MUMBAI (Reuters) - General Motors Corp said on Thursday it would invest more than $200 million in a powertrain plant in India, as the troubled U.S. carmaker aims to double its share of a fast-growing but increasingly competitive market.

The facility, which will be located in Talegaon in Maharashtra at the site of GM's second vehicle plant in India, will have an annual capacity of 160,000 units that can be expanded to 300,000 units, GM said in a statement.

The plant will make petrol and diesel engines and is expected to be completed in the first quarter of 2010, it said.

"We cannot remain a global industry leader without a strong presence in India," its India head Karl Slym said at a news conference to announce the signing of a memorandum of understanding with the state government.

"This will enable us to capture more opportunities in one of the fastest growing vehicle markets in the world," he said.

GM, which makes the Chevrolet-badged Tavera, Optra, Aveo and Spark in a plant in Gujarat, will have a capacity to make 140,000 vehicles in the new Talegaon car plant, taking its India capacity to more than 225,000 units.

"This is just one of a number of investments GM has made over the course of the last few years in emerging markets around the world and is an important component of GM's global strategy," Slym said, adding India investments have exceeded $1 billion.

The U.S. carmaker expects to double its market share in India to 10 percent by 2010.