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 a 'Term Sheet' to acquire assets owned by General Motors, including land, facility, machinery, and equipment. The brand says the proposed acquisition is subject to the signing of the 'Definitive Asset Purchase Agreement' and fulfilment of conditions precedent and receipt of regulatory approvals from relevant government authorities and all the stakeholders related to the acquisition.
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-track the acquisition process once the workers' issues settle. 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. But reports say- currently, the plant will be used to manufacture vehicles that could be exported to foreign countries.
If everything goes according to plans, and the final deal gets locked, then the plant acquisition will give them access to multiply its strengths , thus giving a tough fight to rivals like Tata and Maruti. Well, Hyundai knows to take the right step at the right time. This acquisition will be a game-changer because the demand is boosting, and the limited plant capacity in Chennai could be challenging for the brand.
