Page last updated at 10:11 GMT, Thursday, 24 September 2009 11:11 UK

GM to develop Indian electric car

The Reva-made G-Wiz is the best-selling electric car in the UK

US carmaker General Motors (GM) has said it is to develop a small cheap electric car for India.

The carmaker will develop the model in partnership with India's Reva Electric Car Company, and said it expected production to begin next year.

Reva's electric cars are sold in the UK as under the G-Wiz brand.

Karl Slym, president of GM's India unit, said the companies would work with the Indian government to build a network of charging stations.

Reva, based in Bangalore, sold its first electric car in India in 2001.

The announcement comes a day after US rival Ford announced that it was to make a new car, the Ford Figo, in India as part of its $500m (£304m) investment plan in the country.

Both cars will compete in India's small car segment, which makes up about 70% of the new vehicle market.

GM recently emerged from bankruptcy protection with the US government as its largest shareholder.

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