Hyundai Motor snaps up GM’s Talegaon plant assets in Maharashtra to amplify manufacturing prowess
Hyundai Motor India Limited (HMIL) has sealed the deal with an Asset Purchase Agreement (APA) to acquire key assets at General Motors India’s (GMI) Talegaon Plant. This momentous agreement encompasses the assignment of land, buildings, and other crucial assets at the plant.
As an enhancement to Hyundai’s steadfast dedication to the Indian automotive arena, this acquisition positions Hyundai Motor India for a significant manufacturing expansion. Aiming for a cumulative production target of 1 million units annually, the auto-giant plans to use both its existing Sriperumbudur facility and the newly acquired Talegaon plant. This strategic move also positions HMIL to advance India’s electric vehicle aspirations, as the company contemplates introducing more electric vehicle models, particularly from its Sriperumbudur plant.
Speaking at the signing ceremony in Gurugram, Haryana, were key figures from both organizations – Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice President Manufacturing of General Motors India. The APA, however, is conditional, contingent on meeting specific prerequisites and procuring regulatory consents from pertinent governmental bodies and stakeholders.
Echoing Hyundai’s unwavering commitment, Unsoo Kim remarked, “This year marks Hyundai Motor India’s 27th anniversary in the market. Our allegiance to India is further solidified by our recent pledge to invest INR 20,000 crore in Tamil Nadu for capacity enhancement and setting up an electric vehicle framework. With our eyes on fortifying ‘Atmanirbhar Bharat’ (Self-Reliant India), we envision a state-of-the-art manufacturing hub for cars Made-in-India in Talegaon, Maharashtra, with operations kickstarting in 2025.”
India, with its burgeoning population exceeding 1.4 billion in 2023, remains a global hotspot for the automotive business. The nation’s ambitious target of having 30% of total car sales being electric by 2030 only underscores its market potential. Hyundai, already a major player with 14.6% market share, acknowledges the post-COVID surge in the Indian automobile market and aims to reinforce its production prowess.
While General Motors India’s Talegaon facility currently boasts a production capacity of 130,000 units, HMIL’s vision post-acquisition is to upscale this. With HMIL already raising its production capacity to 820,000 units earlier this year, the Talegaon plant expansion will bolster their annual production closer to the one million mark.
In synergy with Hyundai Motor’s worldwide vision of ‘Progress for Humanity,’ HMIL’s strategic investments in Maharashtra aim to catalyze India’s economic upswing. The investments in Talegaon will focus on refining the existing infrastructure and manufacturing equipment, aligning with Hyundai’s global operational and manufacturing standards, and championing automobile production excellence.