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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Motor has signed a main contract to acquire the Indian plant of General Motors (GM), a U.S. automaker.
Hyundai Motors said on the 16th (local time) that it has signed a main contract with GM India Corporation (GMI) to acquire assets of its plant in Taleagan at Gurugram India Corporation in Haryana, northern India. About 20 officials from the two companies attended the signing ceremony, including Kim Eon-soo, vice president of Hyundai Motor's Asia-East Asia Regional Station, and Asif Katri, vice president of production at GMI. The acquisition amount was not disclosed according to the agreement between the two companies.
Once administrative procedures such as the Indian government's approval are processed, Hyundai Motor will fully acquire rights to the Taleganaon plant within this year. Hyundai Motors plans to start full-scale mass production at the Talegaon plant from 2025.
GM withdrew from the Indian market in 2017, and the Thalegan plant was shut down in October 2020. At the time of GM's operation, the annual production capacity of the Thalegan plant was around 130,000 units. Hyundai Motor is also considering expanding its production capacity at the Talegaon plant.
Hyundai Motor has steadily increased its production capacity in India. In the first half of this year, the production capacity of the Chennai plant in southeastern Tamil Nadu has been expanded from 750,000 units to 820,000 units per year. Adding to the acquisition of the Thalegan plant and increased production capacity, Hyundai Motor will have an annual production capacity of 1 million units in India.
In addition, adding Kia's Anantapur plant in the central and southern part of the country, which was set up with an annual capacity of 340,000 units in 2019, the local production capacity of Hyundai Motor Group, which covers the south to the north, is expected to secure up to 1.5 million units.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
