Hyundai India has announced signing an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon Plant in Maharashtra. The carmaker, which currently has a production facility in Sriperumbudur, Tamil Nadu, wants to strengthen its production capacity to meet to growing demand from the market, and the acquisition of GM India’s Talegaon plant is a step towards that goal. In fact, Hyundai India aims to cumulatively achieve a production capacity of one million units a year from the two plants.
Also Read: Hyundai Planning To Acquire General Motors' Talegaon Plant, Signs Term Sheet
Hyundai will acquire and assign the land, buildings as well as certain machinery and manufacturing equipment at GM’s Talegaon plant
Under the agreement, the Korean carmaker will acquire and assign the land, buildings as well as certain machinery and manufacturing equipment at GM’s Talegaon plant. The company has stated that the completion of the process will be subject to the fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders. Having said that, Hyundai plans to begin manufacturing operations at the Talegaon plant by 2025.
Announcing the APA signing, Unsoo Kim, Managing Director and CEO, Hyundai Motor India Ltd. said, "This year is a significant milestone for Hyundai Motor India, as we celebrate 27 years of activity in the market. Demonstrating our dedication to India, earlier this year, HMIL entered into a Memorandum of Understanding (MoU) to invest INR 20,000 crore in Tamil Nadu for expanding capacity and establishing an electric vehicle ecosystem. As we reinforce our commitment to ‘Atmanirbhar Bharat’ (Self-Reliant India), we intend to create an advanced manufacturing centre for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025."
Hyundai says that the expanded capacity will allow it to review plans to launch additional electric vehicles in India
Right now, GM’s Talegaon plant has a production capacity of 130,000 units per year, which Hyundai plans to expand post takeover to meet its target of producing one million units a year. Hyundai has already enhanced its production capacity from 750,000 units to 820,000 units in the first half of 2023. The company says that the expanded capacity will allow it to review plans to launch additional electric vehicles in India. Which will be manufactured at its Sriperumbudur plant.
Hyundai will invest to upgrade the existing infrastructure and manufacturing equipment at the Talegaon plant, however, it will happen in a phased manner. The aim is to bring the plant up to the company’s global operating and manufacturing standards.
