Hyundai Motor India on Wednesday has signed an asset purchase agreement (APA) for the acquisition and assignment of identified assets at General Motor India’s plant in Maharashtra’s Talegaon. The agreement covers the acquisition and assignment of land, buildings and certain machinery and manufacturing equipment at the General Motor’s Talegaon plant, according to a company release.
The acquisition of the General Motors’ Talegaon plant is subject to the fulfillment of certain conditions and receipt of regulatory approvals from relevant government authorities and stakeholders, the statement said. The agreement also aims to expand the yearly production capacity at the Talegaon plant, which has an annual production capacity of 1,30,000 units at present.
“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 release read.
Hyundai Motor India MD and CEO Unsoo Kim said that manufacturing operations at the plant are scheduled to begin by 2025. “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,” Kim said.
In order to achieve these objectives, Hyundai Motor India is planning to make phased investments for upgrading the existing infrastructure and manufacturing equipment at the Talegaon plant.
Moreover, the carmaker will also review its plans to launch additional electric vehicles (EV) models into the Indian market. These EV models will be manufactured at the company’s Sriperumbudur plant.
Hyundai Motor currently ranks second overall among all automobile brands in India and had the second-largest market share. The carmaker sold 552,511 vehicles in India last year, taking a 14.5 per cent share, ranking second overall among automobile brands in India. HMIL sold 346,711 vehicles this year as of last month, maintaining its second-largest share in the Indian market with a 14.6 per cent share.
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