Hyundai To Acquire GM’s Talegaon, Maharashtra Plant, Production To Start In 2025: CEO Unsoo Kim

The company intends to produce about 1 million units annually with the help of the latest acquisition.

The company has signed an asset purchase agreement with GMI to acquire and assign identified assets related to it’s Talegaon plant. ( Image Source :Getty )

Hyundai Motors has signed an agreement to acquire General Motors India’s (GMI) Talegaon plant in Maharashtra, Hyundai Motor India Ltd (HMIL)’s managing director and CEO Unsoo Kim revealed on Wednesday. 

The company has signed an asset purchase agreement with GMI to acquire and assign identified assets related to it’s Talegaon plant, it said in the statement, reported PTI.

Hyundai had inked a term sheet in March this year which stated that it will potentially acquire land, buildings, and some manufacturing equipment at the Talegoan plant. Now, the automaker has stated that manufacturing operations will begin at the plant in 2025. Kim said, “As we reinforce our commitment to 'Atmanirbhar Bharat', we intend to create an advanced manufacturing center for Made-in-India cars in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025.”

Hyundai entered a Memorandum of Understanding (MoU) to invest Rs 20,000 crore in Tamil Nadu towards capacity building and developing an ecosystem for electric vehicles, earlier this year. The company said in its statement, “With the Sriperumbudur (Chennai) and Talegaon plants, the company aims to cumulatively achieve a production capacity of 10 lakh units a year.” Currently, the Talegaon plant has a capacity of producing 1.3 lakh units annually. 

The report noted that Hyundai will work towards increasing it’s annual production capacity to accomplish it’s goal and it has already increased its capacity from 7.5 lakh units to 8.2 lakh units in the first half of the year so far. Further, the company intends to produce about 1 million units annually with the help of the latest acquisition. The acquisition and assignment of the latest acquisition is subject to certain conditions and regulatory approvals from the appropriate authorities and relevant stakeholders, the company said. 

The future plans of the company include launching more electric vehicle models in the Indian car market, which will be manufactured at the Sriperumbudur plant. Hyundai further plans to enhance and upgrade the existing infrastructure and equipment at the Talegaon plant to ensure the plant matches Hyundai’s operating and manufacturing standards at the global level.