The country’s second-largest carmaker Hyundai Motor India on Friday said it has completed the acquisition of General Motors India’s manufacturing plant in Talegaon, Maharashtra. It also said it will invest Rs 6,000 crore in Maharashtra under the agreement signed between Hyundai Motor India and the state government in Davos.
Hyundai Motor India said in a statement that the acquisition of the Talegaon facility has been completed after meeting certain conditions and receiving regulatory approvals from the relevant government authorities and relevant stakeholders.
An Soo Kim, MD & CEO, Hyundai Motor India Limited (HMIL), said, “India is a very important market for Hyundai Motor Company and we are committed to providing benchmark-setting products and technologies to Indian customers.”
He said, as the company looks forward to the next decade of growth, it is important to increase manufacturing capacity in India.
“The Talegaon manufacturing plant will play a catalytic role in achieving HMIL’s target of 1 million annual production capacity,” Kim said.
He said the acquisition of the Talegaon plant strengthens the automaker’s commitment to a self-reliant India, by making India a hub for advanced smart mobility solutions.
“Our manufacturing operations are scheduled to begin in 2025 in Talegaon, Maharashtra,” Kim said.
The current annual production capacity of the Talegaon plant is 1.3 lakh units. Hyundai Motor India is planning to expand its annual production capacity to achieve its strategic goal in the market.
The company said it intends to make phased investments aimed at upgrading the existing infrastructure and manufacturing equipment at the plant. After more than two decades of operations in India, General Motors stopped selling cars in the country in late 2017, as part of its global restructuring actions.
General Motors had earlier entered into an agreement to sell the Talegaon plant to Chinese carmaker Great Wall Motors. However, the deal fell through last year as the Chinese carmaker canceled plans to enter the Indian market.
(With PTI inputs)
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