mumbai a couple of european asian auto majors including peugeot-citroen of france are in talks with argentum motors to manufacture components cars, it is reliably learnt partnership will involve joint sourcing for domestic global requirements assembly operations argentum motors was set up by hyundai motors india former president bvr subbu, spicejet promoter ajay singh broadband entrepreneur ashish deora argentum motors had acquired surajpur-based daewoo facility for rs 765 crore late last year company is now equipped to produce 4 lakh engines, 4 lakh gear boxes 35,000 aluminium die casting division per annum it has a press shop to produce body parts, moulding machines to make plastic parts, a paint shop a captive power plant mr subbu is ceo while mr singh is chairman of argentum when contacted, mr subbu refused to share details we are in talks with a number of companies, he said german asian auto firms which do not have a manufacturing base in india plan to take advantage of low production costs plant will manufacture engines transmissions for international original equipment manufacturers also act as a contract manufacturer or a third party assembly centre for cars commercial vehicles plant is expected to begin production by april our immediate concern right now is to get component plant started, said mr subbu daewoo motors india closed down its facility in 2001, after it ran into creditor problems plant manufactured cielo, matiz nexia cars produced engines, gear boxes body parts daewoo manufacturing facility in india is third largest after maruti suzuki hyundai argentum is also planning to invest around rs 500 crore to upgrade facility three promoters of company will eventually hold around 12% in company after debt is converted into equity fresh investors are roped in this capacity will attract a large number of global auto manufacturers as company has all building blocks for integrated car component manufacturing, said an analyst of a mumbai-based brokerage