Business
Hyundai Motor India To Buy General Motors' Plant In Maharastra's Talegaon; Manufacturing To Begin In 2025
Hyundai Motor logo
South Korean automaker Hyundai Motor on Wednesday (16 August) said that its Indian unit will buy General Motors' Talegaon plant in Maharashtra.
The company said that Hyundai Motor India Limited (HMIL) signed an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon Plant in Maharashtra.
HMIL managing director and CEO Unsoo Kim, Asifhusen Khatri, vice president manufacturing of General Motors India participated in the signing ceremony in Gurugram, Haryana, according to a company statement.
"The APA covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment situated at GMI’s Talegaon plant," the statement said.
The completion of the acquisition and assignment is subject to fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders, it added.
Announcing the APA signing, HMIL MD and CEO Unsoo Kim said, "Demonstrating our dedication to India, earlier this year, HMIL 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. As we reinforce our commitment to ‘Atmanirbhar Bharat’ (Self-Reliant India), we intend to create an advanced manufacturing center for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025".
General Motors' Talegaon plant currently has an annual production capacity of 130,000 units.
Upon completion of the agreement, HMIL plans to expand the annual production capacity to achieve its strategic goal in the market.
"Since HMIL already has enhanced its production capacity from 750,000 units to 820,000 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," the company said.
Leveraging the expanded capacity, HMIL will review plans to launch additional electric vehicle models into the Indian market, manufactured at its Sriperumbudur plant, thus accelerating India’s electrification goals, it said.
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