Hyundai Motor India Limited (HMIL), a pioneering provider of smart mobility solutions and a prominent exporter from its inception, took a significant step today by officially entering into an Asset Purchase Agreement (APA). This agreement pertains to the acquisition and transfer of specific assets associated with General Motors India (GMI)’s Talegaon Plant in Maharashtra.The signing event, held in Gurugram, Haryana, saw the participation of Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., along with Asifhusen Khatri, Vice President Manufacturing of General Motors India and General Motors International Operations.The scope of the APA encompasses the procurement and transfer of land, buildings, and select machinery and manufacturing equipment located at GMI’s Talegaon facility. The finalization of this acquisition and transfer is contingent upon the fulfillment of certain predetermined conditions and the receipt of necessary regulatory approvals from pertinent government bodies and stakeholders.
Announcing the APA signing, Mr. Unsoo Kim, Managing Director and CEO, Hyundai Motor India Ltd. said, “This year is a significant milestone for Hyundai Motor India, as we celebrate 27 years of activity in the market. Demonstrating our dedication to India, earlier this year, HMIL entered into a Memorandum of Understanding (MoU) 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 center for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025.”
With a population exceeding 1.4 billion in 2023, India stands as a highly promising automotive market on the global stage. It currently holds a distinguished position as one of the world’s top three automobile markets based on sales volume. As part of its forward-looking vision, India is committed to elevating its electric vehicle sales to encompass 30 percent of total car sales by 2030.
Hyundai Motor has been a pivotal player in this thriving landscape, recording a noteworthy sales figure of 552,511 vehicles in the previous year. This accomplishment translated to a substantial market share of 14.5 percent, securing the brand’s second-place ranking among automobile manufacturers in India. The momentum has been maintained in the current year, with Hyundai Motor having already sold 346,711 vehicles up to the last month. This consistent performance has retained its significant market share of 14.6 percent, reinforcing its solid standing in the Indian market.
In response to the robust surge in demand within the Indian automobile sector post the COVID-19 era, Hyundai Motor is proactively enhancing its production capacity. This strategic move positions the company to effectively cater to the escalating market demand, fortifying its position as a prominent and responsive player in the dynamic Indian automotive realm.
Presently, GMI’s Talegaon plant boasts an annual production capacity of 130,000 units. Post the finalization of the agreement, HMIL has ambitious plans to amplify this annual production capacity, aligned with its strategic objectives within the market. Building upon its recent expansion from 750,000 to 820,000 units in the first half of this year, augmenting the capacity of the GMI plant will serve as the cornerstone for HMIL’s envisioned production of approximately 1 million units annually.
This expanded capacity will serve as a catalyst for HMIL’s evaluation of launching additional electric vehicle models in the Indian market, all manufactured at its Sriperumbudur plant. This strategic move significantly accelerates India’s electrification aspirations. Beyond market vitality, HMIL anticipates this agreement to invigorate its business landscape while reinforcing its formidable standing in the Indian automotive sector.
Strategic investments by HMIL in the Maharashtra state converge seamlessly with Hyundai Motor’s global vision of ‘Progress for Humanity.’ This calculated initiative reflects Hyundai Motor’s resolute dedication to contributing substantially to India’s overall economic advancement. The investment underscores Hyundai’s commitment to fostering progress and fostering positive community impact through the cultivation of a robust industrial ecosystem.
HMIL is poised to embark on a phased investment trajectory aimed at elevating the existing infrastructure and manufacturing equipment at the Talegaon Plant. These investments are strategically aimed at elevating the plant to Hyundai Global Operating and Manufacturing Standards, ultimately ensuring the production of automobiles that exemplify the pinnacle of manufacturing excellence.
