Hyundai Acquires General Motors’ Factory in India to Boost Production Capacity

Hyundai, the South Korean car manufacturer, is set to purchase the factory previously run by General Motors (GM) in India’s western state of Maharashtra. This strategic move will significantly increase Hyundai’s local production rates and strengthen its presence in the Indian market.

GM had been searching for a buyer for its Talegaon plant since 2017 when the company ceased selling cars in India due to declining sales. Although an agreement was reached with Great Wall Motor in 2019, the deal fell through as Indian authorities were hesitant about a substantial investment from China.

According to Reuters, Hyundai’s acquisition of GM’s former plant will complement its existing Sriperumbudur plant near Chennai city. This expansion will boost Hyundai’s total Indian production capacity to 1 million units per year, up from the 820,000-unit capacity it had in the first half of this year. Currently, Hyundai manufactures several models in India, including the i10 Nios, i20, Aura, Verna, Venue, Creta, Alcazar, Tucson, and the electric Ioniq 5.

The purchase of GM’s factory marks a significant milestone for Hyundai Motor India. Unsoo Kim, the managing director and chief executive of Hyundai Motor India, and Asifhusen Khatri, vice president of manufacturing for General Motors India and General Motors International Operations, finalized the deal at a signing ceremony in Gurugram, Haryana. The agreement includes the acquisition of land, buildings, machinery, and manufacturing equipment already present at the Talegaon plant.

Kim emphasized Hyundai’s dedication to the Indian market and its commitment to “Atmanirbhar Bharat” (Self-Reliant India). Earlier this year, Hyundai 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. The company intends to create an advanced manufacturing center for cars made in India in Talegaon, Maharashtra, with manufacturing operations scheduled to commence in 2025.

In 2020, Hyundai sold 552,511 vehicles in India, capturing a 14.5% share of the local market. With the acquisition of GM’s factory and the expansion of its production capacity, Hyundai aims to further strengthen its position and increase its market share in India.

Hyundai’s Sriperumbudur plant in India has been a key manufacturing facility for the company. The addition of the Talegaon plant will enhance Hyundai’s capabilities and enable it to meet the growing demand for its vehicles in India. The company’s investment in expanding its manufacturing capacity demonstrates its confidence in the Indian market and its commitment to providing high-quality vehicles to Indian consumers.

As Hyundai continues to expand its presence in India, it is also focusing on electric vehicles (EVs). The recent launch of the electric Ioniq 5 showcases Hyundai’s commitment to sustainable mobility solutions. With the establishment of an electric vehicle ecosystem in Tamil Nadu and the acquisition of GM’s factory, Hyundai is well-positioned to introduce more EV models to the Indian market and contribute to the country’s transition towards greener transportation.

In conclusion, Hyundai’s acquisition of General Motors’ factory in India is a strategic move that will significantly boost its local production capacity. With this expansion, Hyundai aims to strengthen its position in the Indian market and increase its market share. The company’s commitment to investing in India and establishing an advanced manufacturing center demonstrates its dedication to providing high-quality vehicles to Indian consumers. As Hyundai continues to expand its presence and introduce more EV models, it is poised to play a significant role in shaping the future of mobility in India.