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Business Hyundai Motor India Signs ‘Asset Purchase Agreement’ for Acquisition of Identified Assets at GM India Talegaon Plant
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Business Hyundai Motor India Signs ‘Asset Purchase Agreement’ for Acquisition of Identified Assets at GM India Talegaon Plant
Business Hyundai Motor India Signs ‘Asset Purchase Agreement’ for Acquisition of Identified Assets at GM India Talegaon Plant
Hyundai Motor India Signs ‘Asset Purchase Agreement’ for Acquisition of Identified Assets at GM India Talegaon Plant
SEOUL/GURUGRAM, August 16, 2023 – Hyundai Motor India Limited (HMIL), India’s first smart mobility solutions provider and the largest exporter since inception, today signed an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon Plant in Maharashtra.
Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice President Manufacturing of General Motors India and General Motors International Operations, participated in the signing ceremony in Gurugram, Haryana.
The APA covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment situated at GMI’s Talegaon plant. The completion of the acquisition and assignment is subject to fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders.
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.
Managing Director and Chief Executive Officer of Hyundai Motor India Limited
India is one of the world's most promising automotive markets, with a population of more than 1.4 billion as of 2023. The country is currently considered one of the world's top three automobile markets in terms of sales and aims to increase its electric vehicle sales to 30 percent of total car sales by 2030.
Hyundai Motor sold 552,511 vehicles in India last year, taking a 14.5 percent share, ranking second overall among automobile brands in India. HMIL sold 346,711 vehicles this year as of last month, maintaining its second-largest share in the Indian market with a 14.6 percent share. The company is pushing to strengthen its production capacity to actively respond to the expansion of demand in the Indian automobile market, which has been in full swing since the end of COVID-19.
GMI’s Talegaon plant currently has an annual production capacity of 130,000 units. Upon completion of the agreement, HMIL plans to expand the annual production capacity to achieve its strategic goal in the market. Since HMIL already has enhanced its production capacity from 750,000 units to 820,000 units in the first half of this year, the capacity augmentation of the GMI plant will lay the foundation for HMIL to produce around 1 million units a year.
Leveraging the expanded capacity, HMIL will review plans to launch additional electric vehicle models into the Indian market, manufactured at its Sriperumbudur plant, thus accelerating India’s electrification goals. The company expects this agreement to help vitalize its business in the market as well as strengthen its position in the Indian automotive industry.
HMIL is strategically investing in the state of Maharashtra, aligning with Hyundai Motor’s global vision of ‘Progress for Humanity.’ By undertaking this strategic initiative, Hyundai Motor aims to make a significant contribution to the overall economic growth of India. This investment demonstrates its strong commitment to driving progress and creating a positive impact on the local community by fostering the development of a robust industrial ecosystem.
HMIL intends to make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon Plant. These investments are aimed at bringing the plant up to Hyundai Global Operating and Manufacturing Standards, ensuring the production of automobiles that exemplify manufacturing excellence.
