Hyundai acquires GM's Talegaon plant, aims to produce 10 lakh cars annually

Hyundai Motor India on Wednesday announced that it has signed an Asset Purchase Agreement (APA) to acquire the Talegaon plant of General Motors. With this acquisition of the manufacturing plant, the South Korean auto giant aims to increase its cumulative annual vehicle production capacity in the country to 10 lakh units. Hyundai also said that manufacturing operations at the facility are planned to commence in 2025.

Hyundai's acquisition of General Motors' Talegaon plant comes as part of the automaker's strategy to expand business in India. Currently, Hyundai has a manufacturing facility in Sriperambudur near Chennai. With the Talegaon plant acquired, the car brand aims to enhance its annual production capacity to 10 lakh units. Also, Hyundai has informed in an official release that this facility would play a key role in manufacturing electric vehicle models for the Indian market.

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Speaking about the agreement, Unsoo Kim, managing director and CEO of Hyundai Motor India Ltd., said that, this comes as a significant milestone for the automaker. "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," he added.

The Talegaon plant has an annual production capacity of 130,000 units. Hyundai aims to expand this capacity significantly. The automaker claimed to have already enhanced its production capacity from 7.50 lakh units to 8.20 lakh units annually in the first half of 2023. The Talegaon plant will further add to that number. The automaker said that it will make phased investments for upgrading the existing infrastructure and manufacturing equipment at the Talegaon plant.