GM opens second India plant

General Motors Corp. has opened a second plant in India, boosting its production capacity in the country from 85,000 to 225,000 vehicles a year.

The troubled U.S. auto giant has invested $300 million in the new factory in Talegaon, a fast-growing manufacturing hub about two hours outside Mumbai, the nation’s financial capital. The plant opened today.

GM last week pledged to invest another $200 million in an adjacent powertrain facility, which will eventually produce 300,000 engines a year for both domestic and export markets.

Growth in developing countries like Russia, China and India has helped buffer the company from sliding sales in its home U.S. market. In 2007, GM sales in India grew by 74%.

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