Hyundai joins GM’s acquisition of Talegaon facility to boost production
Hyundai Motor is one step closer to establishing its third production base in India. The South Korean auto giant is moving closer to acquiring the now defunct Talegaon facility owned by US-based General Motors. India’s second-largest carmaker recently signed a deal with General Motors India to acquire a facility located about 160 kilometers from Mumbai. This will be Hyundai’s third facility in India, alongside two existing plants in Irungattukottai and Sriperumbudur in Tamil Nadu.
hyundai Motor signed a clause with General Motors that included the purchase of land, buildings, some equipment and machinery from the American auto giant as part of the deal. However, there is still one more step to be completed for Hyundai to fully acquire the facility. This includes entering into another agreement for the purchase of the property. The automaker will then require approval from all stakeholders, including the relevant government, before use can be started.
The Talegaon facility has ceased to exist since General Motors decided to stop doing business in India. GM stopped making cars in India in 2017 after sales slumped for more than a year. Of the two facilities it owns in India, the previous Talegaon facility is expected to be acquired by Chinese automaker Great Wall Motor. However, the Chinese carmaker’s India business failed to take off and the acquisition failed last year. Beside Great Wall Motor, Tata engine And Mahindra and Mahindra are also in competition to get the base.
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The Talegaon facility was established in 2008. Up to the time this facility produced vehicles, it had a capacity of more than 1,300,000 units per year. Hyundai will likely use this facility as it plans to increase its EV presence in India as well as future models. Hyundai is currently for sale Kona điện electricity And ionq 5 electric cars in india.
First published date: March 13, 2023, 10:05 am IST