MUMBAI (PTI): General Motors India, on Thursday said it plans to invest $ 200 million in Talegaon, Maharashtra, to set up a powertrain facility.

This investment is in addition to $ 300 million the company has already invested for making cars in Talegaon, Maharashtra.

"We cannot remain a global industry leader without a strong presence in the high-growth market of India," General Motors India President and Managing Director, Karl Slym, told reporters here after signing the agreement for the powertrain facility with the Maharashtra Government.

"This will enable us to capture more opportunities in one of the fastest-growing vehicle markets in the world," he said.

The company is working on a small car, which it plans to launch in 2009. "We will be launching a small car in India next year," Slym said.

"Our engineers are working on it in our Bangalore centre. The small car will be for the global market," he said. GM's small car would not compete with Tata's Nano, he said.