Hyundai Motor India Ltd. signed an asset purchase agreement to buy the Talegaon plant of U.S.-based carmaker General Motors' India unit to boost production amid rising demand.
The buyout is expected to increase the Korean carmaker's annual production capacity to 10 lakh units, which was recently scaled up to 8.2 lakh units from 7.5 lakh units.
"We intend to create an advanced manufacturing center for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra in 2025," said Unsoo Kim, managing director and chief executive officer of Hyundai Motor India, in a statement on Wednesday.
Considering the expanded capacity, the company will review plans to launch additional electric vehicle models into the Indian market, which will be manufactured at its Sriperumbudur plant, the company said.
Hyundai Motor India has committed to investing Rs 20,000 crore in Tamil Nadu for expanding capacity and establishing an ecosystem for EVs.
The country's second-largest carmaker by volume sold 5.53 lakh units in the year ended March 2023, giving it a 14.5% share in the Indian passenger vehicle market.
General Motors India's Talegaon plant has an annual production capacity of 1.3 lakh units, which the company expects to increase after completion of the agreement.
GM stopped selling cars in the country in 2017 after years of falling sales, but issues related to workers and the sale of the plant prevented it from exiting the market.
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