In Short
- Hyundai currently operates two plants in India.
- Talegaon plant has a manufacturing capacity of 1,30,000 units annually.
- Hyundai will acquire the land, buildings and the machinery as part of the deal.
By Auto TodayHyundai Motor India Limited has announced that the brand has signed a term sheet for the acquisition of the General Motors India plant in Talegaon, Maharashtra.
Currently, Hyundai operates two manufacturing facilities in India, both in Tamil Nadu. With the proposed acquisition, Hyundai wants to take over the land and the buildings at the plant as well as some machinery still existing at the plant after GM’s (Chevrolet) exit from India. The acquisition is subject to the signing of the ‘Definitive Asset Purchase Agreement’ and the fulfillment of conditions precedent and receipt of regulatory approvals from relevant government authorities.
The term-sheet is a non-binding agreement between the two parties which is a precursor to the actual paperwork during the acquisition and the transfer of funds.
Hyundai has not revealed the exact purpose the plant will serve, but it is possible that the Talegaon plant may be used for the manufacture of electric vehicles or for the manufacture of export units as the port is located in close proximity.
The plant has an annual vehicle manufacturing capacity of over 1,30,000 units and was in use till the end of 2020.
Hyundai is set to launch the Hyundai Verna 2023 in the coming weeks.
Jakob Auer
Johnnie King
Kole Prosacco