GM will sign an agreement with Government of Maharashtra to set up and engine and transmission plant tomorrow. The company wants to be front runner in the growing Indian Automobile market as it aims to double its market share to 10% by 2010.

The unit will be located in Talegaon where GM’s second Indian plant is scheduled to start operations next week, said a GM’s spokesperson but declined to give the details of the investment made by the company.

“It is an extension of the investment GM has made in Talegaon for the vehicle facility,” he said.

GM will hold a press conference tommorrow where a momorandum of understanding with the state will be signed.

Source: Reuters

The new car plant will have the capacity to make 140,000 units which take GM’s total capacity in India to more than 225,000 units. GM will build a new small car at its new plant which will help it achieve its goal for the future in the Indian market.