The South Korean carmaker did not disclose the amount it would pay the US firm to buy the plant, which has an annual production capacity of 130,000 units.
“As HMIL ramps up 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, the capacity addition at the GMI plant will lay the foundation for HMIL to produce around 1 million units. units in the year, it said in a statement.
Ansoo Kim, managing director and chief executive officer of HMIL, said the company intends to set up an “advanced manufacturing hub for Made-in-India cars” at Talegaon. “Our manufacturing operations are scheduled to start in Talegaon in 2025.”
HMIL, which is the second largest carmaker in India, had signed a term sheet with GMI in March this year for a possible acquisition of assets at the Talegaon plant.
HMIL said, “The completion of the acquisition and assignment of the Talegaon plant is subject to fulfillment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders.”
As directed by the Pune Industrial Court, a mediator held two rounds of talks between GMI and the employees’ union earlier this year, but the out-of-court talks did not yield any results. The union has filed a petition in the Bombay High Court on this matter. It is not clear whether these workers will be hired by Hyundai at its new plant.
GMI signed an agreement with Great Wall Motors in January 2020 to sell the Talegaon plant, but the deal fell through in June last year as the Chinese carmaker did not get approval from the Indian government in time. General Motors shut down production at the Talegaon plant in 2020.
In May this year, HMIL tied up with the Tamil Nadu government to invest Rs 20,000 crore over a period of 10 years to set up an electric vehicle (EV) battery pack assembly unit, develop new EVs and internal combustion engine (ICE) vehicles. signed an agreement. To enhance the manufacturing capacity of its Sriperumbudur plant.
HMIL is the largest car seller in the country after Maruti Suzuki India. Its market share in the passenger vehicle market is 14.58 per cent as compared to Maruti’s 41.3 per cent. According to SIAM data, in FY23, HMIL sold 567,546 units domestically, a year-on-year growth of 17.87 per cent.
In FY22, Hyundai posted a profit after tax of Rs 2,861 crore, a year-on-year growth of 54 per cent. Hyundai India plans to introduce six electric vehicles (EVs) by 2028, according to Kim, who spoke to Business Standard in January.
“HMIL (Hyundai) was the first company to launch the Kona Electric, a long-range electric SUV (Sport Utility Vehicle) in 2019. As we continue to redefine the mobility sector, we have announced a phase-wise investment of Rs 4,000 crore Has announced to develop six electric vehicles in India by 2028,” he had said.