Hyundai India acquires General Motor's Talegaon plant, to invest ₹6,000 crore in Maharashtra

Hyundai India on Friday informed that it has acquired General Motor's Talegaon plant in Maharashtra.

A Memorandum of Understanding (MoU) was signed between India's second-largest automaker's CEO Un Soo Kim and Maharashtra's Industries Minister Uday Samant in Davos. Hyundai Motor India Ltd has committed to invest ₹6,000 crore in Maharashtra.

The Indian unit of the Korean carmaker announced the deal in March 2023. With the acquisition, Hyundai's production capacity is expected to surge to one million from more than 800,000 currently.

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The Talegaon plant has an existing annual production capacity of 130,000 units. The company intends to make phased investments for upgrading the existing infrastructure and manufacturing equipment in the plant, according to the release.

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"India is a very important market for Hyundai Motor Company, and we are committed to provide benchmark-creating products & technologies to Indian customers. As we look forward to the next decade of progress for Hyundai Motor India, it is crucial for us to augment our manufacturing capacity in India. The Talegaon manufacturing plant will play the role of a catalyst in achieving HMIL's 1 million annual production capacity milestone. The acquisition of the Talegaon plant reinforces our commitment to 'Atmanirbhar Bharat' by making Inda a hun for advanced smart mobility solutions, Make-In-India for the world," Kim said.

Hyundai Motor India is expected to begin operation in Maharashtra's Talegaon by 2025, Kim added.

Earlier this month, Hyundai signed a non-binding agreement with the Tamil Nadu government to invest ₹6,180 crore on various initiatives, including establishing a hydrogen resource centre.

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The fresh investment by the automaker is in addition to the ₹20,000 crore it plans to deploy over a period of ten years (2023- 2032) to augment its efforts in electric vehicle manufacturing, charging infrastructure, and skill development.

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Hyundai Motor India has its manufacturing base in Tamil Nadu. It rolls out over 8 lakh units annually from the manufacturing plant near Chennai.

'India's car export declines'

According to the Society of Indian Automobile Manufacturers (SIAM) latest data, automobile shipments from India declined 21% in 2023.

Overall exports stood at 42,85,809 units last year compared to 52,04,966 units in 2022.

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However, passenger vehicles' exports rose 5% to 6,77,956 units last year from 6,44,842 units in 2022.

Hyundai Motor India shipped out 1,29,755 units between October and December FY2024 compared to 1,19,099 units in the same period of last fiscal.