Hyundai Motor India To Acquire General Motors' Talegaon Plant
South Korean carmaker, Hyundai Motor has 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.
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 completion of the acquisition and assignment is subject to the fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders.
The agreement was signed between Unsoo Kim, Managing Director and CEO of Hyundai Motor India and Asifhusen Khatri, Vice President of Manufacturing at General Motors India and General Motors International Operations.
Announcing the APA signing, Unsoo Kim, Managing Director and CEO of Hyundai Motor India, said, "Earlier this year, HMIL entered into a Memorandum of Understanding (MoU) to invest INR 20,000 crore in Tamil Nadu for expanding capacity and establishing an electric vehicle ecosystem. 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."
GMI’s Talegaon plant currently has an annual production capacity of 1,30,000 units. Upon completion of the agreement, HMIL plans to expand its annual production capacity. HMIL 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.
Leveraging the expanded capacity, HMIL will review plans to launch additional electric vehicle models into the Indian market, manufactured at its Sriperumbudur plant.
HMIL intends to make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon Plant.
