Hyundai Motor India (HMIL) has signed an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon plant in Maharashtra.
The company expects this agreement to help vitalise its business in the market and strengthen its position in the domestic automotive industry.
HMIL intends to make phased investments to upgrade the existing infrastructure and manufacturing equipment at the Talegaon Plant. These investments aim to bring the plant up to Hyundai Global Operating and Manufacturing Standards, ensuring the production of automobiles that exemplify manufacturing excellence.
GMI’s Talegaon plant currently has an annual production capacity of 130,000 units. Upon completion of the agreement, HMIL plans to expand its annual production capacity to achieve its strategic goal in the market.
A press release from HMIL noted that since the company has already 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.
Leveraging the expanded capacity, HMIL will review plans to launch additional electric vehicle models into the Indian market manufactured at its Sriperumbudur plant.
Unsoo Kim, Managing Director and CEO, HMIL, noted that earlier this year, the company entered into a Memorandum of Understanding to invest INR 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 centre for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon in 2025,” he added.
HMIL strategically invests in Maharashtra, aligning with Hyundai Motor’s global vision of ‘Progress for Humanity.’ By undertaking this strategic initiative, the company aims to contribute to India's overall economic growth significantly.
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