Hyundai Motor India Limited signs 'Asset Purchase Agreement' for acquisition of GM Plant
Hyundai Motor India Limited (HMIL) signed an Asset Purchase Agreement (APA) today to acquire and allocate specified assets pertaining to General Motors India's (GMI) Talegaon Plant in Maharashtra. The signing event in Gurugram, Haryana, was attended by Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice President of Manufacturing of General Motors India and General Motors International Operations. This arrangement, a big step forward for Hyundai, includes the purchase of land, buildings, machinery, and production equipment at GMI's Talegaon factory.
With a population of more than 1.4 billion people in 2023, India is one of the world's most promising automobile markets. The country is now ranked as one of the top three automobile markets in the world, with a goal of increasing electric vehicle sales to 30 percent of total car sales by 2030.
Hyundai Motor sold 552,511 vehicles in India last year, accounting for 14.5 percent of the market and placing second overall among automobile companies. As of this month, HMIL has sold 346,711 vehicles this year, keeping its second-largest market position in India with a 14.6 percent share. The firm is attempting to increase its manufacturing capacity in order to actively respond to the increased demand in the Indian vehicle industry, which has been in full swing since the conclusion of Covid-19.
GMI's Talegaon factory now has a production capacity of 130,000 units per year. Following the execution of the transaction, HMIL intends to increase yearly production capacity in order to fulfil its market strategic target. Since HMIL increased its production capacity from 750,000 to 820,000 units in the first half of this year, the capacity expansion of the GMI factory will provide the groundwork for HMIL to manufacture around 1 million units per year.
HMIL will evaluate plans to offer further electric car models into the Indian market, built at its Sriperumbudur facility, hence expediting India's electrification aspirations. The company anticipates that this deal will assist to revitalize its market presence and enhance its position in the Indian automotive sector.
HMIL is investing strategically in Maharashtra, harmonizing with Hyundai Motor's worldwide objective of 'Progress for Humanity.' Hyundai Motor hopes to make a substantial contribution to India's overall economic growth by launching this strategic project. By promoting the development of a dynamic industrial environment, the company displays its strong commitment to driving success and making a beneficial influence on the local community.
Starts Rs 9.99 Lakhs
Starts Rs 9.95 Lakhs
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