The Talegaon, Maharashtra, facility of General Motors will be purchased by Hyundai Motor Co.’s Indian subsidiary, the South Korean manufacturer said on Wednesday. Hyundai, the second-largest automaker in India based on sales, made no mention of the deal’s value.
Through its Talegaon and Sriperumbudur factories, Hyundai hopes to reach a combined annual manufacturing capacity of one million vehicles.
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’s current goal is to have 30% of all new cars sold by 2030 be electric vehicles. The business sold 5,52,511 automobiles 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 Motors 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 hub for automobiles built in India in Talegaon, Maharashtra, as we strengthen our commitment to ‘Atmanirbhar Bharat’ (Self-Reliant India).
The agreement will enable the American automaker to leave India. After experiencing years of declining sales, GM stopped selling vehicles in the nation in 2017. However, the company’s ultimate withdrawal 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 could not get regulatory permits in the face of intensified Beijing-New Delhi investment scrutiny.
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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 category had exceeded the 50-day threshold. FADA, however.
According to SIAM data, domestic wholesale sales of passenger vehicles increased by 2.57 percent on a year-over-year basis to 3,50,149 units in July. In July 2022, there were 3,41,370 passenger cars (PVs) shipped from manufacturers to dealers.
