Hyundai Completes Acquisition Of GM’s Talegaon Plant

After Hyundai Motor India signed an agreement to acquire the land, buildings, machinery, and manufacturing equipment of GM's Talegaon plant in August 2023, it has now completed acquisition and assignment of identified assets at the plant. An MoU has been signed between Hyundai Motor India and Government of Maharashtra in the presence of Uday Samant, Minister of Industries, Government of Maharashtra and Un Soo Kim, MD & CEO, Hyundai Motor India Ltd., in Davos. The company has committed to invest Rs. 6000 crore in the state of Maharashtra. Hyundai has clarified that the investment is made by the company and we expect the vendors and associates number to take this figure higher, however, that has yet not been disclosed

The investment will be made through phases with majority of it coming by 2028. Un Soo Kim, MD & CEO, Hyundai Motor India Ltd. said, “As we look forward to the next decade of progress for Hyundai Motor India, it is critical 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 Talegaon plant has an existing annual production capacity of 130,000 units. Hyundai Motor India plans to expand the annual production capacity to achieve its goal in the market.

Hyundai has not disclosed the amount it will pay to purchase the plant, but it has had to deal with protests from the GM's Employees' Union organised protests against the non-absorption of workers and while the Government of Maharashtra has assured compensation for them, it also assured those eligible will be absorbed by the company.