GM India to invest USD 300 mn in two years

GM India to invest USD 300 mn in two years

GM India to invest USD 300 mn in two years

"We are investing USD 300 mn in the next two years for launching six new products," Vice-President (Marketing), GM India, P Balendran told PTI.

Balendran said the industry arithmetic was that a new car platform typically required an investment of USD 50 million.

The new products, he said, would comprise a compact car, a sedan, multi-utility vehicles, van and pick-ups. He said that the company had tied up with a consortium of banks for funding the required investment.

Besides, he said that GM India was expecting a growth of more than 70 per cent during the current calendar year.

"This year, we are expecting to sell more that one lakh units," he said. In 2009, the company had sold 69,000 units.

Balendran said that the company was making operational profits, but was yet to clock net profit.

Recently, the company commissioned its engine plant at Talegaon near Pune. Balendran said that the plant would manufacture 1.60 lakh engines per year for various models in the petrol and diesel categories.

He said that depending upon the sales growth, the plant's capacity could be expanded by another 1.40 lakh units.

GM India has invested US$ one billion in Indian operations, which was controlled by a 50:50 joint venture between GM and SAIC of China.

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