General Motors India has signed an MoU with the Maharashtra government for a $200 million-dollar engine plant that will be constructed in Talegaon, near Pune.
GM India currently imports its powerplants from South Korea and Australia for the cars it sells in India. The upcoming plant will have an annual capacity of 160,000 engines, which can be expanded to 300,000 units per annum.
The factory is scheduled to begin operations next week, and the first engines will roll out of the factory in 2010. GM plans to launch two new small cars in India next year, but no other details about the cars are currently available.