Hyundai to commence operations in Talegaon plant from 2025
Hyundai Motor India Limited (HMIL) has officially signed an Asset Purchase Agreement (APA) for the acquisition of certain assets from General Motors India (GMI)’s Talegaon Plant in Maharashtra.
The deal includes the transfer of land, buildings and selected machinery from GM’s plant. The finalisation of the agreement is subject to meeting specific conditions and obtaining necessary approvals.
Unsoo Kim, CEO of Hyundai Motor India Ltd has expressed the company’s dedication to the Indian market. This agreement comes in a year when Hyundai celebrates 27 years of operation in India.
Recently, Hyundai had also entered into a Memorandum of Understanding (MoU) to invest Rs. 20,000 crores in Tamil Nadu for increasing production capacity and establishing an electric vehicle ecosystem. Their intention is to create an advanced manufacturing centre in Talegaon, Maharashtra, aiming to start operations by 2025.
Hyundai sold 5,52,511 vehicles in India last year, capturing a 14.5 percent market share. This year, they have maintained a 14.6 percent market share, selling 3,46,711 units so far. With the recent recovery of demand post the pandemic, the company is actively working to boost production capacity to meet market demands.
Currently, GM’s Talegaon plant can produce 1,30,000 vehicles annually. After the completion of this acquisition, Hyundai plans to expand this capacity to achieve their market goals. With their production capacity having already increased from 7,50,000 units to 8,20,000 units this year, Hyundai’s investment in the GM plant will likely push their annual production to around 1 million units.
Capitalising on the expanded capacity, Hyundai will also assess launching more electric vehicles in the Indian market. These vehicles will be manufactured at the Sriperumbudur plant in Tamil Nadu.
Hyundai’s phased investments will focus on enhancing existing infrastructure and manufacturing equipment at the Talegaon plant. This move aims to elevate the plant to Hyundai’s global operating and manufacturing standards.
