Hyundai Motor India Ltd (HMIL) has acquired General Motors (GM) India's Talegaon plant in Maharashtra. It will invest Rs 6000 crore in the state, said the South Korean carmaker about an agreement signed at the World Economic Forum meet in Davos, Switzerland.
However, the company did not disclose the amount it paid the American firm for the plant.
As per reports, the Talegaon plant has an existing annual production capacity of 130,000 units. The company intends to make phased investments for upgrading the existing infrastructure and manufacturing equipment in the plant.
HMIL said in a statement the acquisition was completed post fulfilment of certain conditions and receipt of regulatory approvals from government authorities and stakeholders.
"India is a very important market for Hyundai Motor Company, and we are committed to provide benchmark-creating products & technologies to Indian customers. As we look forward to the next decade of progress for Hyundai Motor India, it is crucial for us to augment our manufacturing capacity in India. The Talegaon manufacturing plant will play the role of a catalyst in achieving HMIL's 1 million annual production capacity milestone. The acquisition of the Talegaon plant reinforces our commitment to 'Atmanirbhar Bharat' by making Inda a hun for advanced smart mobility solutions, Make-In-India for the world," said HMIL CEO Un Soo Kim.
HMIL intends to 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.
HMIL has already enhanced its production capacity (at its Sriperumbudur plant in Tamil Nadu) from 750,000 units to 820,000 units in the first half of this year. This acquisition will enable HMIL to increase it further to 1 million units per year.