NEW DELHI: Hyundai Motor India (HMIL) has completed the acquisition and assignment of identified assets at General Motors India’s Talegaon Plant in Maharashtra. The South Korean carmaker commits to invest Rs 6,000 crore in the state of Maharashtra.
“The acquisition has been completed post fulfilment of certain conditions and receipt of regulatory approvals from relevant government authorities and relevant stakeholders,” HMIL said in a statement.
An MoU has been signed between Hyundai Motor India and the Government of Maharashtra in the presence of Uday Samant, Hon’ble Minister of Industries, Government of Maharashtra and Un Soo Kim, MD & CEO, Hyundai Motor India, in Davos on January 18th, 2024.
Un Soo Kim said, “India is a very important market for Hyundai Motor Company, and we are committed to providing benchmark-creating products & technologies to Indian customers. As we look forward to the next decade of progress for Hyundai Motor India, it is critical for us to augment our manufacturing capacity in India. The Talegaon manufacturing plant will play the role of a catalyst in achieving HMIL’s 1 million annual production capacity milestone.”
Kim added that Hyundai’s manufacturing operations are scheduled to begin in Talegaon, Maharashtra in the year 2025.
Talegaon plant has an existing annual production capacity of 130,000 units. Hyundai Motor India plans to expand its annual production capacity to achieve its strategic goal in the market.
“HMIL intends to make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon Plant. These investments are aimed at bringing the plant up to Hyundai Global Operating and Manufacturing Standards, ensuring the production of automobiles that exemplify manufacturing excellence,” the carmaker said.
Hyundai, India’s second-largest carmaker, signed a ‘Term Sheet’ in March 2023 for the potential acquisition of identified assets related to General Motors India in Talegaon Plant.
After more than two decades of operations in India, US auto giant General Motors stopped selling cars here in 2017-end. General Motors had earlier inked a pact to sell the plant to Chinese carmaker Great Wall Motors but the deal could not go through owning to high tensions between India and China.