Hyundai finalizes Talegaon plant purchase; allocates Rs 6,000 Cr Maharashtra investment

• ByStartupStory     |    January 19, 2024

On Friday, Hyundai Motor India announced the successful completion of the acquisition of General Motors India’s manufacturing plant located in Talegaon, Maharashtra. The country’s second-largest carmaker also disclosed its commitment to invest Rs 6,000 crore in the state of Maharashtra, under an agreement with the government, signed in Davos.

According to a statement by Hyundai Motor India, the completion of the Talegaon facility acquisition follows the fulfillment of specific conditions and the receipt of regulatory approvals from relevant government authorities and stakeholders. Un Soo Kim, Managing Director & CEO of Hyundai Motor India Ltd (HMIL), emphasized the significance of India as a market for Hyundai Motor Company, stating, “India is a very important market for Hyundai Motor Company, and we are committed to providing benchmark creating products and technologies to Indian customers.”

Kim expressed the company’s commitment to enhancing manufacturing capacity in India, stating, “As the company looks forward to the next decade of progress, it is critical to augment manufacturing capacity in India.” He highlighted the Talegaon manufacturing plant’s role in achieving HMIL’s ambitious goal of reaching an annual production capacity of 1 million units.

Kim underlined the strategic importance of the acquisition in aligning with the government’s vision of Atmanirbhar Bharat, stating, “The Talegaon plant will play the role of a catalyst in achieving HMIL’s 1 million annual production capacity milestone.” He revealed the timeline for manufacturing operations to commence at the Talegaon plant, noting, “Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in the year 2025.”

The Talegaon plant currently boasts an annual production capacity of 1.3 lakh units. Hyundai Motor India has plans to expand this capacity in line with its strategic objectives in the market. The company intends to make phased investments for upgrading the existing infrastructure and manufacturing equipment at the Talegaon plant.

Reflecting on General Motors’ history in India, the article notes that the company ceased selling cars in the country at the end of 2017 as part of its global restructuring efforts. The Talegaon plant was initially slated to be sold to Chinese carmaker Great Wall Motors, but the agreement fell through last year when Great Wall Motors abandoned its plans to enter the Indian market.

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