Talegaon: Executives from GM and officials from the Maharashtra government today laid the foundation stone of the company's new vehicle manufacturing facility at Talegaon near Mumbai, from where the company will manufacture a Chevrolet mini-car for the domestic market in the last quarter of 2008.

The company is also considering the possibility of setting up an engine and powertrain plant for its future expansion.

The project commencement follows the signing of a MoU between the Indian subsidiary of the world's largest automaker and the Maharashtra government on 3 August 2006, when the company said it planned to spend $300 million.

This is the first major investment by a global auto major in the state in recent years, which is home to Indian automakers like Tata Motors, M&M, Bajaj Auto, Fiat, Skoda and Kinetic Engineering.

The $300 million Talegaon plant will have an initial annual production capacity of 140,000 vehicles and help it to meet its projected growth to 10 per cent by 2010, from 2.3 per cent currently. The company says it would employ 1,000 people at its 300-acre facility from the outset and the plant can be expanded in line with growing demand for its products.

"By more than doubling our annual manufacturing capacity in India, the new plant will position GM for long-term expansion in the world's second-fastest growing market," said GM group vice president and president of GM Asia Pacific Nick Reilly at today's ceremony.

The Talegaon facility will complement GM's existing production facility in Halol, Gujarat, which currently manufactures the Chevrolet Tavera, Chevrolet Optra, Chevrolet SRV and the Chevrolet Aveo for sale in India.

In addition, the GM India Technical Center in Bangalore is carrying out engineering, research and development activities for GM on a local, regional and global basis.

General Motors, founded in 1908, is the world's largest automaker and manufactures its cars and trucks in 33 countries. The company owns several well known brands like Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.