Hyundai Motors Indian division has acquired the General Motors Talegaon plant, which will enhance their production capacity to one million units, per year. General Motors decided to exit the market after ceasing car sales in 2017. Previous efforts to sell the plant to China’s Great Wall Motor faced challenges due, to obstacles.
Hyundai Motor Co, headquartered in South Korea, announced on Wednesday that its Indian subsidiary will acquire General Motors’ Talegaon plant, situated in the Indian state of Maharashtra.
With the addition of the Talegaon plant to its Sriperumbudur facility near Chennai city, Hyundai aims to achieve an overall production capacity of one million units per year. Last year, the company successfully sold 552,511 vehicles in the Indian market.
This strategic agreement enables General Motors to exit the Indian market. General Motors ceased car sales in India in 2017 due to declining sales. However, the process of exiting the market has been complicated by issues such as legal disputes with workers and the inability to secure a buyer for the Talegaon plant.
In a previous attempt, in 2019, General Motors had agreed to sell the Talegaon plant to China’s Great Wall Motor. Unfortunately, the discussions fell through the following year due to the company’s inability to obtain necessary regulatory approvals, a situation exacerbated by heightened scrutiny of investments from Beijing by the Indian government.
