In its very first endeavour in car manufacturing, Argentum Motors has announced that it is set to expand the capacity of its production facility to 4 lakh units per annum. The production facility at Himachal Pradesh was acquired by Argentum Motors from former South Korean car giant Daewoo Motors which closed down following financial irregularities.

Argentum Motors will start manufacturing small car engines of 1-2 litre for various small car manufacturers operating in India. Currently, the company has a capacity to manufacture larger displacement engines such as 1.3-litre-1.7-litre, which will be expanded to manufacture even engines with 2-litre displacement.

Argentum Motors is promoted by former President of Hyundai Motors India Mr. B.V.R. Subbu, Director of SpiceJet Airlines Mr. Ajay Singh and promoter of SpiceJet Airlines Mr. Ashish Deora. Chairman of Argentum Motors, Mr. Ajay Singh said that they will also be setting up a new paint shop and assembly line with a capacity for 2.5 lakh – 3 lakh cars per annum. The new units will be established with an additional investment of Rs. 500 Crore.

Mr. Singh said that they would essentially be targeting manufacturers who want to outsource their equipment manufacturing to units in India. Argentum wants to be partners with international brands for their global operations, he added. The company expects to take off with its first exports in May. They are currently holding talks with European and American car manufacturers on producing components for their Indian operations. Eventually, the company plans to move to manufacturing cars on contract for foreign manufacturers in India.