General Motors (GM) has decided to invest $200 million (about Rs 870 crore) for engine, gearbox and transmission project. The engine project would be set up in Talegaon near Pune, Maharashtra.

The company has recently signed a memorandum of understanding (MoU) with the state government of Maharashtra. GM is the largest manufacturer of automobiles in the world with strong presence in almost all developed countries.

The proposed power train project would have an annual production capacity of 160,000 units and it would be completed by 2010.

The head of Indian operation of General Motors (GM), Karl Slym said that the company would set up more facilities in the emerging market of India in the near future. The company is optimistic to capture the car market in India with its innovations and technical capabilities. The state government has promised to extend all sort help to company for this set up. The state industry secretary Aziz Khan said that the project would provide employment to about 1,400 people.

The company is already producing Tavera, Optra, Aveo and Spark, under the Chevrolet brand in Gujrat. It is planning to launch new models in the smaller car segment in 2009. the company would think to launch hybrid cars in India after the provisions of good infrastructure by the state machinery.