Several European and Japanese car manufacturers, who do not have production facilities in India, are now engaged in talks with Argentum Motors to manufacture cars in India. Argentum Motors owns the third largest automobile production facilities after Maruti Suzuki and Hyundai in India. Argentum acquired the facility located in Surajpur from Daewoo Motors India, after the company ran into losses leading to its closure.

Argentum was set up by three promoters, BVR Subbu, former president of Hyundai Motors India, Ajay Singh, promoter of Spice Jet airlines, and internet broadband entrepreneur Ashish Deora. The facility was bought for Rs 765 Crore in 2007. The company is also investing another Rs 500 Crore to upgrade the present facilities to international standards. They plan to launch equity shares to get fresh investors for its projects.

Presently the production facility has a capacity to manufacture 4 lakh engines and gearboxes and 35,000 aluminum dies-casting and car body parts per annum. There are also moulding machines for plastics in cars and a paint division. The plant is expected to begin operations in April 2008, and the company is already in talks with German and Japanese car manufacturers for new car projects.

Mr Subbu, CEO of the company, while being discreet about the details, only said that “we are holding talks with a number of companies.” They plan to start the production of car components first before commencing full car productions.