Chennai, (UNI) Passenger car makers Hyundai Motor India Limited (HMIL) on Wednesday signed an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets of General Motors India (GMI)’s Talegaon Plant in Maharashtra, where HMIL, with phased investments, would
commence its manufacturing operations in 2025.
HMIL Managing Director and CEO Unsoo Kim and General Motors India and General Motors International Operations Vice-President Manufacturing Asifhusen Khatri participated in the signing ceremony a Gurugram, a HMIL release said.
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 fulfillment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders.
Announcing the APA signing, Mr.Unsoo Kim said “This year is a significant milestone for Hyundai Motor India, as earlier this year, HMIL entered into a Memorandum of Understanding (MoU) to invest Rs 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”, he said and added that “Our manufacturing operations are scheduled to begin in Talegaon in 2025 to augment HMIL’s manufacturing footprint”.
As part of Hyundai’s resolute commitment to the Indian automotive industry, with the Sriperumbudur (Chennai) and Talegaon plants, HMIL is aiming to cumulatively achieve a production capacity of one million units a year.
He said 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.
India 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 per cent of total car sales by 2030.
Hyundai Motor sold 552,511 vehicles in India last year, taking a 14.5 per cent share, ranking second overall among automobile brands in India.It 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 one million units a year.
HMIL is strategically investing in the state of Maharashtra, aligning with its global vision of ‘Progress for Humanity.’ By undertaking this strategic initiative, HMIL 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 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 production of automobiles that exemplify manufacturing excellence.
