Hyundai Motors to invest Rs 7,000 crore for its second plant in Maharashtra

Hyundai Motor CompanyThe South Korean multinational automotive manufacturer is planning to rehabilitate its recently acquired second plant in India with a massive investment of Rs 7,000 crore.

Hyundai Motor intends to invest money to repair General Motors’ defunct plant in Maharashtra.

With the successful acquisition of the dormant plant from General Motors Company, the automotive giant brought about a dramatic change in the Indian auto industry. The investment agreement is scheduled to be formally signed in Davos, Switzerland during the annual World Economic Forum summit.

Maharashtra Deputy Chief Minister Devendra Fadnavis recently confirmed the news on his X platform (formally known as Twitter), expressing the state’s excitement for this massive economic collaboration, reported ET.

Maharashtra Deputy Chief Minister announced that Hyundai has confirmed an investment of Rs 7,000 crore in Talegaon, Pune. He also said this would be the automaker’s first investment in India outside Tamil Nadu, where the company has been investing and successfully doing business for over 25 years.

He further informed that Hyundai will be signing a Memorandum of Understanding (MoU) with the Government of Maharashtra (GoM) at the World Economic Forum Summit in Davos.

Hyundai made headlines last year when it acquired the Talegaon General Motors factory. The facility was inactive for a long time as a result of the American automaker’s struggle to sell it after its exit from the Indian market.

Meanwhile, Hyundai’s big investment reflects the company’s dedication to expanding its presence in India. It is estimated that the investment of Rs 7,000 crore will have a cascading impact in the Indian market, strengthening Hyundai’s position in the cutting-edge Indian auto industry, stimulating the local economy and creating employment opportunities.

The automaker’s production capacity should increase dramatically with the new plant. The annual production capacity of 8.25 lakh at its Tamil Nadu manufacturing facility makes it the second largest car manufacturer in India at present.

However, it is not clear how much the brand’s production capacity will increase after the Talegaon plant becomes operational. The date on which operations will resume to begin distribution of Hyundai automobiles is also unknown.

The automaker is reportedly focusing on SUVs to meet the growing demand for utility vehicles in the country. According to reports, Hyundai intends to invest Rs 200 crore over the next eight years in the production of new electric cars, battery pack assembly units and EV charging stations on main roads in Tamil Nadu.