Hyundai seeks to purchase GM’s Talegaon plant: Details

• ByStartupStory     |    March 13, 2023

Hyundai Motor India Ltd. (HMIL) has revealed that they have signed a ‘Term Sheet’ which outlines the terms and conditions for a possible acquisition of General Motors India’s Talegaon plant in Maharashtra. The said plant was formerly utilised by General Motors as a facility for assembly and powertrain production, but vehicle production has been discontinued there since 2020.

After halting vehicle production in 2020, General Motors has been exploring options for the sale of the Talegaon plant. Now, there seems to be a glimmer of hope for the facility as Hyundai has signed a Term Sheet for the potential acquisition of the plant’s land, buildings, machinery, and equipment necessary for manufacturing vehicles.

The company has made an official statement stating that “the proposed acquisition of the Talegaon plant by Hyundai is contingent upon several conditions, including the signing of a ‘Definitive Asset Purchase Agreement,’ the fulfilment of prerequisites, and obtaining regulatory approvals from the relevant government authorities and all stakeholders involved in the acquisition”.

 

In January 2020, an agreement was signed between General Motors and China’s Great Wall Motors (GWM) for the purchase of the Talegaon plant. This move was a part of GWM’s strategy to establish its presence in the Indian market. However, despite extending the term sheet twice, the deal eventually fell through last year.

Although the agreement between the two automotive giants is still pending, Hyundai Motor India is considering using the Talegaon plant as its initial facility for producing electric vehicles (EVs). The company had previously announced its intention to raise its annual production capacity to 820,000 units by June of this year. Currently, Hyundai operates two manufacturing plants located in Irungattukottai and Sriperumbudur in Tamil Nadu.

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