General Motors, the largest automobile manufacturer in the world, was made a deal with the western Indian state of Maharashtra on Thursday, August 27. The purpose of the agreement was to set up an engine and transmission plant for its enhancing automobile markets in the world, to be sited in Talegaon. Already GM has set its second automobile plant in Talegaon. The new plant will start operations from the very next week. An official for the company was describing the latest venture, informed, “It is an extension of the investment GM has made in Talegaon for the vehicle facility.”

GM already manufactured different type of vehicle in India in Gujarat such as the Chevrolet Aveo, Chevrolet Optra, Chevrolet Tavera, and Chevrolet Spark are. By the new agreement GM get extra facility that will start production next week will have a facility of 140,000 units, boosting its overall capacity in India to 225,000 vehicles. Day by day India’s vehicle market is increasing, especially small passenger car. With the sale of passenger automobiles every year in India projected to reach 2 million pieces by the year of 2010, so the country stand for a huge vehicles market for GM.

But GM will be faced direct competition in the country with the Nano. Nano is a product of Tata Motors and its estimated cost around $2,283 each car and it is going to launch in this October. On the other hand rival auto manufacturer Ford began productions in this May as well at its engine assembly plant in Chennai which situated in southern part of India and that plant is projected to reach an ultimate capacity of 250,000 vehicles.

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