The Talegaon, Maharashtra, facility of General Motors will be purchased by Hyundai Motor Company Indian subsidiary, the South Korean manufacturer announced on Wednesday. Hyundai Motor Company, the second-largest automaker in India based on sales, made no mention of the deal’s value. Through its Talegaon and Sriperumbudur plants, Hyundai hopes to reach a combined annual manufacturing capacity of one million units.
The agreement comprises the purchase and transfer of certain machinery and manufacturing equipment located at GMI’s Talegaon factory, as well as land and structures. Hyundai motor company current goal is to have 30% of all new cars sold by 2030 be electric vehicles. Additionally, the company sold 5,52,511 vehicles in India last year, capturing a 14.5% share. Additionally, it sold 3,46,711 vehicles in 2023 up till June, keeping its second-largest market share in India with a 14.6 percent share, according to the company.
“Hyundai Motor company India signed a Memorandum of Understanding (MoU) earlier this year to spend rs 20,000 crore in Tamil Nadu for capacity expansion and the creation of an ecosystem for electric vehicles. Unsoo Kim, Managing Director and CEO of HMIL, stated, “We want to establish an advanced manufacturing centre for automobiles built in India in Talegaon, Maharashtra, as we strengthen our commitment to ‘Atmanirbhar Bharat’ (Self-Reliant India).
Talegaon will host the company’s manufacturing operations starting in 2025.The agreement will enable the American automaker to leave India. After experiencing years of declining sales, GM stopped selling cars in the nation in 2017. However, the company’s ultimate exit from the market has been complicated by legal disputes with employees and the inability to find a buyer for the facility.
2019 saw GM reach an agreement to sell the facility to China’s Great Wall Motor, but negotiations dissolved in 2017 as the businesses were unable to get regulatory permits in the face of intensified Beijing-New Delhi investment scrutiny. As the sector moves closer to the holiday season, the organization for auto dealers, FADA, has underlined that there is optimism about a boost in retail sales. In anticipation of the approaching festival season, it stated that the inventory level in the PV segment has exceeded the 50-day threshold. FADA, though.
Due to harsh weather brought on by climate change, power outages will grow more frequent and last longer, making it desirable to have a vehicle that can keep the lights on and the refrigerator running. The U.S. Energy Information Administration reports that from 2015 to 2021, the average length of power outages quadrupled.
Hyundai Motor contemplates an investment upwards of Rs 5,000 crore in the facility over the imminent decade. The extant GM Talegaon establishment presently boasts an annual manufacturing capability of 1,30,000 units. Subsequent to the consummation of the accord, HMIL is strategizing an augmentation of its yearly production competence, aligned with its market objectives. Considering HMIL has already elevated its output quantum from 7,50,000 units to 8,20,000 units during the first half of this fiscal year, the expansion of GM’s plant capacity shall serve as the bedrock, enabling HMIL to fabricate approximately 1 million units annually.
Feasibility of the accord sprouted forth subsequent to the comprehensive clearance of regulatory prerequisites by the government of Maharashtra. Notably, the local industrial tribunal, with a nod of endorsement, sanctioned the cessation despite the vociferous protests emanating from the contingent of nearly 1,000 toilers.
In the immediate bygone week, the twin architects of the Maharashtra government’s ministerial facet—namely, Suresh Khade, steward of Labor, and Uday Samant, overseer of Industries—affirmatively affirmed the unwavering resolve of the state machinery to ameliorate the schisms besetting the erstwhile General Motors workforce. This schism, alas, now crystallized into a formidable obstacle impeding the seamless bequeathal of GM’s Talegaon establishment to the guardianship of Hyundai Motors India.