GM India to setup another factory in Maharashtra

General Motors Indian unit has confirmed their plans to build their second plant in the Maharashtra state.

The company is aiming to garner a 10% market share in India by the end of 2010 and they have signed on a formal agreement on Thursday evening with the state officials for this upcoming plant.

GM said that this factory would be located in Maharashtra and would have a capacity of more than 100,000 units.

They would be investing around $428-$471 million on this project. In addition, GM is already working on expanding the production capacities at their plant in Halol in the western Gujarat state to 85,000 units from 60,000.

The company needs this additional manufacturing capacity, as they are due to launch the Chevrolet Spark model in India sometime next year.

GM India already manufactures Chevrolet Aveo, Chevrolet Tavera, Chevrolet Optra and Chevrolet SRV.