Hyundai Motor India Ltd. (HMIL), the second-largest carmaker in India, has completed the acquisition of General Motors India’s Talegaon Plant in Maharashtra, as part of its expansion strategy in the country. The acquisition boosts Hyundai’s cumulative production capacity to 1 million units and aligns with the ‘Atmanirbhar Bharat’ initiative.
Acquisition Details
The Asset Purchase Agreement (APA) includes the assignment of land and buildings and the acquisition of identified assets at the plant. The acquisition was finalized after meeting specific conditions and obtaining regulatory approvals from relevant government authorities and stakeholders .
The Talegaon plant has an existing annual production capacity of 1.30 lakh units, which Hyundai intends to expand to meet its objectives. The company plans phased investments to upgrade the infrastructure and manufacturing equipment at the plant, aligning with its global manufacturing and operating standards .
Investment Details
An MoU was signed between Hyundai Motor India and the Government of Maharashtra in the presence of Uday Samant, State Industries Minister, and Un Soo Kim, MD & CEO, HMIL, in Davos on January 18, 2024 . The company has committed to invest ₹6,000 crore in Maharashtra.
The commencement of production at the Talegaon Plant is anticipated in 2025. Un Soo Kim said, “India is a very important market for Hyundai Motor Company, and we are committed to provide benchmark creating products & technologies to Indian customers. As we look forward to the next decade of progress for Hyundai Motor India, it is critical for us to augment our manufacturing capacity in India. The Talegaon manufacturing plant will play the role of a catalyst in achieving HMIL’s 1 million annual production capacity milestone. The acquisition of Talegaon plant reinforces our commitment to ‘Atmanirbhar Bharat’ (Self-Reliant India), by making India a hub for advanced smart mobility solutions, Make-In-India for the world .”
Market Performance
Hyundai Motor India has been performing well in the Indian market, despite the challenges posed by the pandemic. Last year, the carmaker marked its highest-ever domestic sales, surpassing the significant six-lakh milestone with a total of 6,02,111 units sold. The company also launched several new models and variants, such as the new Creta, i20, Aura and Alcazar, which received positive response from customers.
With the acquisition of Talegaon plant and the investment in Maharashtra, Hyundai Motor India aims to further strengthen its position in the Indian market and offer more value-added products and services to its customers.