General Motors opened its second car factory in Talegaon, near Pune in India that shall double its production capacity in the country. There has been surge in demand for small cars in South East Asian countries and nearly every car maker is rushing to meet the demands. The new second plant is built with an investment of $300 million which would increase the current capacity of 140,000 units to 225,000 units annually. It first plant is located in Halol in Gujarat with an annual capacity of 85,000 units per year.

After Maruti Suzuki and Hyundai, now General Motors is planning to make India as its manufacturing and exports hub for small cars. "Eventually, we can scale up the capacity to 300,000 units a year at this facility, depending on market demand. We are considering this (plant) as an export hub for small cars," said Karl Slym, President and Managing Director GM's local unit.

According to Fritz Henderson, President and Chief Operating Officer, General Motors, the company is serious about becoming a leader in India just like it is in various parts of the globe.