General Motors will invest Rs 1,000 crore to Rs 1,200 crore to setup manufacturing unit at its Talegaon plant in Pune, to facilitate production of power train (engine and gear box) for its spark model. This plant will have a capacity to produce 2 lakh units per annum.

The company is expecting to roll out the first car of its spark model, from september this year. The car manufacturing unit has a capacity of 1.30 lakh units per annum and Rs. 1,400 crore have already been invested to setup this unit.

The MoU will be signed with the Maharashtra Government before the end of July 2008.

"The schedule for bringing up the power train unit in Pune plant, has not been finalised yet," said P Balendran, vice president (corporate affairs), General Motors.