Unsoo Kim, MD & CEO, Hyundai Motor India Ltd. File
| Photo Credit: Kamal Narang
Hyundai Motor India Limited (HMIL) said it has signed an Asset Purchase Agreement (APA) for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon Plant in Maharashtra.
Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice-President Manufacturing of General Motors India and General Motors International Operations, participated in the signing ceremony in Gurugram, Haryana.
“The APA covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment situated at GMI,” the HMIL said in a statement.
“The completion of the acquisition and assignment is subject to fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders,” the statement added.
‘Significant milestone’
Mr. Kim 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 ₹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 centre for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025,” he added.
GMI’s Talegaon plant currently has an annual production capacity of 130,000 units. Upon completion of the agreement, HMIL plans to expand the annual production capacity to achieve its strategic goal in the market.
Production capacity to be enhanced
Since HMIL already has enhanced its production capacity from 750,000 units to 820,000 units in the first half of this year, the capacity augmentation of the GMI plant will lay the foundation for HMIL to produce around 1 million units a year, HMIL said.
HMIL said it was strategically investing in Maharashtra, aligning with Hyundai Motor’s global vision of ‘Progress for Humanity.’
“ By undertaking this strategic initiative, Hyundai Motor aims to make a significant contribution to the overall economic growth of India. This investment demonstrates its strong commitment to driving progress and creating a positive impact on the local community by fostering the development of a robust industrial ecosystem,” the company said.
HMIL would make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon Plant.
“These investments are aimed at bringing the plant up to Hyundai Global Operating and Manufacturing Standards, ensuring the production of automobiles that exemplify manufacturing excellence,” the company said.
