Hyundai India has announced that they have signed an agreement to acquire GM India’s Plant in Talegaon. With this move, the automaker has aimed to achieve a production capacity of 10 Lakh units per year. This acquisition is a part of their business expansion plans for increasing production capacity.
During the ceremony of signing the agreement, Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice President of Manufacturing of General Motors India and International Operations embarked on their presence at the event.
Details about the Hyundai India Acquisition of Plant
The acquisition of GM India Talegaon Plant is a part of the business expansion strategy of the company. However, the aim of the Korean carmaker is to expand their business in the market and reduction of the waiting period.
Hyundai India has signed an Asset Purchase Agreement for acquiring the General Motors India Talegaon Plant in Maharashtra. The agreement includes the assets such as land and buildings, machinery equipment, and manufacturing equipment of the production plant.
Meanwhile, the completion of the agreement is done after fulfilling the requirements of approval from government authorities and the stakeholders. This move represents the brand’s commitment to growing its presence in the Indian market and providing satisfaction to customers.
Importance of the Indian Market for Hyundai
As per the carmaker, India is one of the most important markets in the world for the company. With a population of over 1.4 billion, the company has considered India for the highest sales in the top 3 markets. However, the main aim of the company is to achieve 30% of its total sales from electric vehicles by 2030.
Last Year, Hyundai India sold 552,511 vehicles which helps to achieve 14.5% of the market share. With these numbers, Hyundai is the second-largest automaker in the Indian market. Meanwhile, the automaker has sold 346,711 vehicles this year up to last month. With this plant acquisition, the company has aimed to produce more vehicles for fulfilling the demand of the market.
Production Capacity and Investment
As of now, GM India’s Talegaon plant boasts a production capacity of 130,000 units. After the agreement’s completion, Hyundai India plans to increase the production capacity of the plant in the future. The increment in the production capacity of the plant is a part of the company’s business expansion strategy.
Recently, the carmaker has increased its overall capacity from 750,000 units to 820,000 units in the first half of 2023. However, the acquisition of Talegaon Plant will result in a production capacity of 1 million units.
Meanwhile, the automaker has plans to invest in the newly acquired manufacturing plant in Talegaon, Maharashtra. The automaker will invest in a phased manner under its “Progress for Humanity” strategy. With the investment, the aim of the company is to upgrade the plant for meeting its global standards. Also, this investment will assure that the automaker will take the production of automobiles to the next level representing the excellence of manufacturing.
Future Goals
With the boost in production capacity, Hyundai India has plans to introduce more electric vehicles to the market. However, the production of their electric vehicles will be held at the Sriperumbudur plant, representing the ambitions of the company towards the electrified future. The recent move of the company represents the expansion of its business in the market and aims to retain its position in the market.
Official Statement
Announcing the APA signing, Mr Unsoo Kim, Managing Director and CEO, of 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.”