Indian subsidiary Hyundai Motor India (HMIL) announced the successful completion of its acquisition of General Motors’ Talegaon manufacturing facility in Maharashtra. The company also plans to pump in ₹6,000 crore investment in the state as per a recent agreement with the government.
The takeover concluded after Hyundai secured the necessary regulatory approvals and fulfilled specific conditions set for the transfer. The move bolsters the automaker’s production capacity in a strategic growth market like India.
HMIL MD & CEO Un Soo Kim stressed the importance of the Indian market for Hyundai’s global operations. He said the Talegaon plant will be pivotal in unlocking their target of 1 million annual vehicle production in India. While operations are slated to commence only in 2025, Hyundai wants to upgrade infrastructure and equipment at the site in phases.
The existing Talegaon facility has an annual output of 1.3 lakh units. Hyundai is keen to further expand its capacity to meet its long-term objectives in the thriving Indian automobile sector. The acquisition also ties in with the company’s commitment to the government’s self-reliance vision by elevating India as a manufacturing and R&D hub.
The Maharashtra government partnership will facilitate Hyundai’s growth plans, including the proposed investments. The investments, signed by both parties at the recent World Economic Forum summit in Davos, underscore Hyundai’s strategic emphasis on India during a seminal year for the firm globally.
With India set to become the world’s third-largest car market soon, the timely capacity expansion and investments exhibit Hyundai’s proactive efforts to consolidate its position as the second-largest automaker in the country.
