Hyundai to acquire GM India's Talegaon manufacturing facility

14 Mar 2023 , 12:15 PM

On Monday, Hyundai Motor announced that it has entered into a term sheet regarding the possible acquisition of General Motors’ manufacturing plant located in Talegaon, Maharashtra.

‘The term sheet covers the proposed acquisition of land and buildings, as well as certain machinery and equipment for manufacturing at General Motors India’s Talegaon Plant,’ Hyundai Motor India stated in a statement.

Hyundai has signed a non-binding agreement that sets out the proposed terms and conditions of the potential acquisition, with the agreement being in effect for a specified duration. Once Hyundai secures approval from relevant government authorities and comes to a resolution with the laid-off workers of the Talegaon facility, the company is expected to finalize the agreement.

According to sources within the industry, Hyundai is currently leading the pack in the competition to acquire General Motors’ Talegaon plant, following China’s Great Wall Motor’s (GWM) withdrawal from its plan to enter the Indian market due to growing scrutiny of Chinese investments by Indian regulatory bodies.

The sources also highlight that Mahindra & Mahindra and Tata Motors are also interested in acquiring the unit.

With its manufacturing units near Chennai at full capacity, Hyundai Motor India will be able to meet domestic and international demand for its vehicles with the additional capacity in Talegaon.

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