South Korean automaker has made quite a name in the auto space since its inception in 1996 in India. Now, the brand is set to amplify its growth potential by acquiring a defunct General Motors manufacturing plant in Talegaon. Hyundai Motor India Limited signed an Asset Purchase Agreement (APA) to acquire identified assets owned by General Motors, including land, facility, machinery, and equipment. The acquisition proposal is subject to numerous factors, such as the execution of the 'Definitive Asset Purchase Agreement,' compliance with all essential criteria, and acquiring the regulatory approval of relevant government bodies and stakeholders engaged in the acquisition process.
General Motors used the facility for assembly and powertrain manufacturing, but since its exit from the Indian market in 2017, the plant has been non-operational since 2020. Earlier, Mahindra and Tata Motors showcased willful intent to acquire the plant; however, various court allegations and legality penalties on the Talegoan plant made plans worse for the buyers. Now, Hyundai Motors took the matters into its own hand and will fast-tracked the acquisition process . Hyundai to subsequently invest around 5000 crores in the coming times . According to reports, the plant has a manufacturing capacity of 1,30,000 vehicles and 1,60,000 engines annually.
Hyundai aims to diversify its product portfolio. The new-age EVs are taking centre-stage already, and the brand aims to capitalize on the move with its strong and multiple products lineup; thus Talegaon manufacturing facility holds a special and ambitious deal. The plant will be put to potiential use to manufacture vehicles that could be exported to foreign countries.
The plant acquisition allows them to multiply its strengths, thus giving a tough fight to rivals like Tata and Maruti. The plant will be operational by 2025 once the labour issue will get resolved. Well, Hyundai knows to take the right step at the right time. The upcoming acquisition is set to revolutionize the brand's operations as the demand is on the rise, and the limited plant capacity in Chennai poses a significant challenge.