Hyundai Motor India To Acquire General Motors’ Plant In Maharashtra's Talegaon

Hyundai Motor India, on Wednesday said that it has signed an asset purchase agreement to acquire General Motors India Talegaon plant in Maharashtra. Hyundai further said manufacturing operations at the plant are planned to commence in 2025. 

According to media reports, the company had inked a term sheet, in March, to potentially acquire land, buildings and certain manufacturing equipment at General Motors India's (GMI) Talegaon manufacturing plant.

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"As we reinforce our commitment to 'Atmanirbhar Bharat', we intend to create an advanced manufacturing center for Made-in-India cars in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025," Hyundai Motor India Ltd (HMIL) Managing Director and CEO Unsoo Kim said in a statement.

The completion of the acquisition and assignment of the Talegaon plant is subject to fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders, it added.

Kim, earlier this year, said that the company had entered into a Memorandum of Understanding (MoU) to invest Rs 20,000 crore in Tamil Nadu for expanding capacity and establishing an electric vehicle ecosystem.

With the Sriperumbudur (Chennai) and Talegaon plants, the company aims to cumulatively achieve a production capacity of 10 lakh units a year, the company added. Currently, GMI’s Talegaon plant has a production capacity of 1.3 lakh units.

"Upon completion of the agreement, HMIL plans to expand the annual production capacity to achieve its strategic goal in the market,” Hyundai Motors India said.

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It further added, "Since HMIL already has enhanced its production capacity from 7.5 lakh units to 8.2 lakh units in the first half of this year, the capacity augmentation of the GMI plant will lay the foundation for HMIL to produce around 1 million units a year.”

HMIL further said it will review plans to launch additional electric vehicle models into the Indian market, manufactured at its Sriperumbudur plant. It also revealed its plans to make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon plant.