To develop a second car plant in India, Hyundai Motor India Ltd is thinking about buying the Talegaon facility in Maharashtra’s General Motors, along with some of its assets, including land and buildings.
The Talegaon facility of General Motors India has been identified as having certain assets, including land, a building, and specific machinery and equipment, according to Hyundai Motor India. A term sheet has been signed for the potential acquisition of these assets.
“The term sheet covers the proposed acquisition of land and buildings as well as specific production machines and equipment located at General Motors India’s Talegaon Factory,” the business claimed. The ‘Definitive Asset Acquisition Agreement’ must be signed, certain prerequisite requirements must be met, and all parties involved in the acquisition must give their regulatory approval before the proposed acquisition may proceed.
In November 2022, our sister journal Autocar Professional reported that Mahindra and Tata Motors were also vying for the Talegaon facility owned by GM India, but that Hyundai was leading the pack. The Talegaon plant, which was established in 2008 and has an annual production capacity of 1,30,000 vehicles and 1,60,000 engines, ceased operations in early 2020.
According to insiders, Hyundai has already looked into the area and its proximity to the port. It has been learned that the South Korean automaker plans to produce the Venue small SUV at the Talegaon factory and may use it as a platform for exporting vehicles that are entirely built in India.
“The initial research is complete. Hyundai is eagerly awaiting the resolution of the workers’ disputes since it wants to buy the factory. The facility is located directly in the center of the automotive cluster, which will help the company diversify its manufacturing footprint. Also, it is adjacent to the port, which meets their condition for buying the facility. Only legal clearances will be required before the final signature, the source continued.
The South Korean automaker has promised to invest Rs 4,000 crore through 2028 in order to further its aspirations to introduce six electric vehicles (EVs) in the nation. In a recent interview with Autocar India, the company’s MD stated that it intends to offer a whole line of EVs.
In order to meet the growing domestic and global demand, Hyundai Motor India would need to expand its manufacturing capabilities at its factory in Sriperumbudur, on the outskirts of Chennai.
Tata Motors, which just acquired Ford India’s Sanand factory, is vying for No. 2 with a capacity of over a million vehicles, but Hyundai also wants to be ready to defend its own territory.
