Hyundai Motor India has signed an agreement to acquire the assets related to the U.S.-based General Motors (GMI’s) Talegaon Plant in Maharashtra, according to a statement by the South Korean automobile manufacturer. The development would pave the exit of General Motors from the Indian market. The company has already shutdown operations in India six years ago. General Motors stopped car sales in India in 2017 and shut showrooms in India in 2020.

According to Hyundai, the agreement covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment situated at the General Motors Talegaon plant. The South Korean automaker plans to expand its annual production capacity to around one million units a year. The Talegaon plant currently has an annual production capacity of 1,30,000 units. The manufacturer of Creta, Exter and Tucson is also eyeing to invest ₹2,061 crore, as per reports.

"The completion of the acquisition and assignment is subject to fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and relevant stakeholders," the company says.

"Leveraging the expanded capacity, HMIL will review plans to launch additional electric vehicle models into the Indian market, manufactured at its Sriperumbudur plant, thus accelerating India’s electrification goals. The company expects this agreement to help vitalize its business in the market as well as strengthen its position in the Indian automotive industry," it adds. In June this year, Hyundai Motor announced plans to roll out as many as two million units of electric vehicles globally by 2030 as part of the company's 'Hyundai Motor Way' strategy. In order to accelerate its transition toward becoming a smart mobility solution provider, Hyundai plans to invest $85.41 billion (KRW (Korean Won) 109.4 trillion) in the next 10 years by 2032, with a special focus on the company’s electric vehicle segment.

In the first half of CY23, Hyundai Motor India achieved a production capacity of 8,20,000 units a year. The company aims to increase its electric vehicle sales to 30% of total car sales by 2030. In FY23, the South Korean automobile manufacturer sold 5,52,522 units in the domestic market and cornered a market share of 14.6%.

"This year is a significant milestone for Hyundai Motor India, as we celebrate 27 years of activity in the market. Demonstrating our dedication to India, earlier this year, HMIL entered into a Memorandum of Understanding (MoU) to invest ₹20,000 crore in Tamil Nadu for expanding capacity and establishing an electric vehicle ecosystem. As we reinforce our commitment to 'Atmanirbhar Bharat' (Self-Reliant India), we intend to create an advanced manufacturing centre for cars Made-in-India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025," says the South Korean automobile manufacturer.

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