On Wednesday, Hyundai Motor India inked an asset purchase agreement (APA) for the purchase and assignment of specific assets at General Motor India’s Talegaon facility in Maharashtra. According to a press release from the company, the agreement comprises the purchase and transfer of land, buildings, and certain machinery and manufacturing equipment at the Talegaon factory of General Motors.
A brief about Hyundai Motor signs a deal to purchase the Talegaon factory from GM India; production will start in 2025
According to the announcement, the purchase of the General Motors Talegaon factory is contingent on meeting a number of requirements and receiving regulatory permissions from the necessary government agencies and stakeholders. The Talegaon factory now has a 1,30,000 unit annual production capacity, and the agreement hopes to increase that capacity.
The capacity expansion of the GMI factory “will lay the foundation for HMIL to produce around 1 million units a year” since HMIL already increased its production capacity from 750,000 to 820,000 units in the first half of this year.
Unsoo Kim, MD and CEO of Hyundai Motor India, stated that the plant’s manufacturing operations are expected to start by 2025. “In order to further demonstrate our dedication to ‘Atmanirbhar Bharat’ (Self-Reliant India), we plan to establish an innovative automotive manufacturing facility in Talegaon, Maharashtra. In Talegaon, Maharashtra, we intend to start manufacturing in 2025,” Kim stated.
Hyundai Motor India intends to make further investments in the Talegaon plant’s manufacturing machinery and existing infrastructure in order to meet these goals.
Additionally, the automaker will reevaluate its intentions to introduce more electric vehicle (EV) models into the Indian market. The firm’s Sriperumbudur factory will produce these EV models.
Hyundai Motor now holds the second-largest market share in India among all automakers and is ranked second overall. The automaker finished second overall among Indian auto brands with sales of 552,511 vehicles, accounting for a 14.5% market share. As of last month, HMIL has sold 346,711 vehicles this year, keeping its second-largest market share in India with a share of 14.6%.