Second Car Plant from General Motors in India

Wednesday 06 August 2008, 00:00 AM by Satish

The second plant from General Motors is expected to start its production from September in India. The new plant shall have the manufacturing capacity of 140,000 units and shall manufacture small cars to compete with market leaders like Maruti, Nano, etc. in the small car segment. Nano is slated to roll out in the last quarter of the current year. However, the small cars from the new plant would definitely be costlier than the price of $2500. The new plant is located in Talegaon in Maharashtra and shall cater to the fast growing small car market in India.

General Motors has its current plant in western Gujarat that manufactures Chevrolet Aveo and Chevrolet Spark as well as Travera. It is currently working on an increased capacity of manufacturing 85,000 units annually. General Motors hopes to satisfy the growing demand for its cars and curb the operational efficiencies with its increased capacity.

General Motors recorded sales of 5706 units in July which is 25 percent more than its sales in July 2007. It also aims to have 190 dealers across the country by the end of the current calendar year. Emerging markets like India and China are crucial for car makers like General Motors that are facing tough situations back home in the US.

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