 "Hyundai")
Hyundai Motor India Ltd (HMIL) has acquired General Motors India's Talegaon plant in Maharashtra and will invest Rs 6000 crore in the state, said the South Korean carmaker about an agreement signed in Davos, Switzerland, where the World Economic Forum is being held.
The company did not disclose the amount it paid the American firm for the plant. HMIL, the second-largest carmaker in India after Maruti Suzuki, had previously signed a term sheet with General Motors India for the potential acquisition of the plant.
The Bombay High Court in January disposed of two writ petitions filed by an employees’ union challenging an industrial tribunal’s orders allowing General Motors India to close down the Talegaon plant, noting accumulated losses of Rs 9,656.87 crore as of 2021-22.
HMIL said in a statement the acquisition was completed post fulfillment of certain conditions and receipt of regulatory approvals from government authorities and stakeholders. "An MoU has been signed between Hyundai Motor India and Government of Maharashtra in the presence of Uday Samant, Minister of Industries, Government of Maharashtra, and Un Soo Kim, MD & CEO, Hyundai Motor India Ltd., in Davos on January 18th, 2024," said Hyundai.
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“India is a very important market for Hyundai Motor Company, and we are committed to provide benchmark creating products and 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 one million annual production capacity milestone," said Un Soo Kim.
The plant, which has an annual production capacity of 13,0000 units, is scheduled to resume manufacturing in 2025. HMIL plans to expand the 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 company said.
HMIL has already enhanced its production capacity (at its Sriperumbudur plant in Tamil Nadu) from 750,000 units to 820,000 units in the first half of this year. This acquisition will enable HMIL to increase it further to 1 million units per year.
General Motors India ceased selling cars in the domestic market in 2017, pulling out after more than two decades of operations as part of a global restructuring.
