Hyundai To Increase Its Production Capacity With The Acquisition Of The GM Plant

The newly acquired plant will be Hyundai’s third manufacturing facility in the country

Hyundai has entered into an asset purchase engagement (APA) to acquire the Talegaon manufacturing plant of General Motors (GM). This strategic move will help bolster Hyundai's manufacturing presence in India, adding to their two existing facilities in Sriperumbudur, Tamil Nadu.

The transaction entails Hyundai gaining control over GM's land, buildings, certain machinery, and manufacturing equipment housed within the Talegaon plant. Once the pending approvals and conditions for the acquisition are completed, Hyundai will be able to take the plant’s 1.3 lakh production capacity per annum to its existing annual manufacturing capacity of 8.2 lakh units, with operations to start by 2025. However, the Korean carmaker intends to ramp up production from this freshly acquired facility to get its total aggregate output to 10 lakh units a year. 

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Furthermore, this acquisition will enable Hyundai to revisit its plans for introducing more electric vehicles (EVs) to the Indian market. The company plans to utilise one of its Tamil Nadu plants for manufacturing these EVs. With the addition of this new manufacturing hub, Hyundai gains the capacity to introduce a broader range of vehicles to the Indian market, helping manage demand and reduce waiting times. This expansion in production capacity will also facilitate increased exports.

Hyundai's recent announcement about a new India-centric EV has sparked speculation that a Creta EV might be in the pipeline, especially considering the vehicle has been spotted undergoing testing on multiple occasions. In addition, Hyundai is rumored to be launching an MPV priced similarly to the Carens, aimed at providing an alternative to the Toyota Innova.

As of now, Hyundai offers a lineup of 13 car models in India, including two EVs—the IONIQ 5 and Kona Electric. The company is gearing up to introduce updated versions of popular models such as the Creta, i20, and Kona EV, in the coming year.