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General Motors to start Talegaon plant by November

Powertrain facility to roll out 1.3 litre diesel engine for Beat and a 1.2 litre petrol engine.

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General Motors to start Talegaon plant by November
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General Motors India’s powertrain facility at Talegaon will be commissioned by October-November this year, a source close to the development said.

According to the source, the facility will roll out a 1.3 litre diesel engine for the recently launched Beat and a 1.2 litre petrol engine.

The powertrain plant’s annual installed capacity is 1.6 lakh units, which GM plans to ramp up once the second phase, which will manufacture 1.4 lakh units, is operational.

The company will manufacture 1- and 1.5-litre petrol and diesel engines at the facility. The plant is dedicated to manufacturing engines only for compact cars.

GM will look at exporting the excess capacity to Asia Pacific region after the plant commences production. The source said that selling engines to a third party and developing engines for Shanghai Automotive Industries Corporation’s (SAIC) light commercial vehicles, are options that the company will consider once the plant is commissioned.

For April-December FY10, GM India produced 37,145 units of Spark and U-VA, and for the same period sold 37,882 units. Also, the company plans to sell 5,000 units of Beat monthly for the initial period.

Since the powertrain unit will be operational only by the end of this year, the company will source engines for them from its global manufacturing plants.

However, GM is aiming at expanding its components outsourcing operations in India. The company, which has only 40% localisation with the remaining 60% sourced from Korea, wants 100% localisation over a period of time.

The automaker has invested $510 million in the Talegaon facility.  Of this, $210 million is for the first phase of the powertrain plant. Investments for the second phase will be decided later.

The company is looking at ramping up its Talegaon car-manufacturing capacity from 1,40,000 units annually to 3,00,000 units.

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