Hyundai Motor India has completed the acquisition of General Motors (GM) India’s Talegaon plant, in Maharashtra. The completion of the process followed the fulfilment of specific conditions and the receipt of regulatory approvals from relevant government authorities and stakeholders. This development comes after the signing of the asset purchase agreement for the assignment of land and buildings and acquisition of identified assets, in August 2023. The carmaker, which currently has a production facility in Sriperumbudur, Tamil Nadu, wants to strengthen its production capacity to meet growing market demand, and the acquisition of the former GM 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.
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An MoU was signed between Hyundai Motor India and the Government of Maharashtra in Davos, on January 18, 2024. The commitment entails an investment of Rs 6,000 crore in the state of Maharashtra.
Hyundai India intends to reach an annual production capacity of 1 million units.
Regarding the acquisition, Un Soo Kim, MD & CEO of Hyundai Motor India Ltd., stated, “India is a crucial market for Hyundai Motor Company, and we are committed to providing products and technologies to Indian customers. As we anticipate the next decade of progress for Hyundai Motor India, it is essential for us to enhance our manufacturing capacity in India. The Talegaon manufacturing plant will play a catalyst role in achieving HMIL’s 1 million annual production capacity milestone. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in the year 2025”.
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The Talegaon plant currently has an annual production capacity of 130,000 units. It is understood that Hyundai plans to expand the existing capacity to 200,000 units and beyond, and to that end, the company will make phased investments to upgrade the existing infrastructure and manufacturing equipment at the Talegaon plant.
Hyundai is also gearing up to expand its electric vehicle portfolio in India, and will have six battery-electric models on sale here by 2028. The company started 2024 by rolling out a substantial midlife update for its best-selling SUV, the Creta, which is priced from Rs 11 lakh to Rs 20 lakh (ex-showroom).
