Hyundai buys India GM plant; will turn it to high-tech manufacturing center
New Hyundai plant in India to become operational by 2025
Hyundai is not satisfied with its 14.6% market share in India, the second largest in the country’s auto industry. To address this issue, they bought General Motors India’s (GMI) plant in Talegaon, Maharashtra.
The Korean automaker announced it signed an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets related to GMI’s Talegaon plant. Present during the occasion were Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice President of Manufacturing of General Motors India and General Motors International Operations.
"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 center for cars made in India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025," said Kim.
Hyundai manufactures up to 820,000 units in India annually. The addition of the 130,000-capacity Talegaon plant will expand its capacity to offer more models, including electric vehicles. After upgrading the Talegaon plant to make it up to par with Hyundai Global Operating and Manufacturing Standards, the annual production of all Hyundai plants in India is expected to hit 1,000,000 units.
Hyundai Motor (HM) sold 552,511 vehicles last year in India. Over the last eight months, HM delivered 346,711 units, which represents a 14.6% market share. A new plant, and an expanded vehicle lineup, will help it strengthen its position in the Indian automotive industry.
