Hyundai acquires GM plant in India

Home > Industry Analysis > Content

【Summary】Hyundai Motor Group has acquired General Motors India's Talegaon plant in an effort to strengthen its position in the rapidly growing Indian automobile market. The deal will increase Hyundai Motor India's production capacity to 960,000 units per year, with a goal of producing around 1.4 million units annually. This acquisition allows Hyundai to establish a local production system for electric vehicles and better compete in the world's third-largest automobile market.

FutureCar Staff Nov 27, 2023 10:14 PM PT

Hyundai Motor Group Executive Chair Chung Eui-sun is aiming to dominate the Indian market, which has become the world's third-largest automobile market. In order to establish a strong presence, the carmaker has acquired General Motors India (GMI)'s Talegaon plant and plans to establish a local production system for electric vehicles.

The agreement to take over the assets of GM India's Talegaon plant was signed in Gurugram, Haryana state, India. The exact acquisition amount has not been disclosed to the public yet.

With this acquisition, Hyundai Motor India's production capacity will increase from 824,000 units to 960,000 units. Combined with the capacity augmentation of Kia's plant in Anantapur, which can produce 370,000 units a year, Hyundai aims to produce around 1.4 million units annually.

India, with its large population, has emerged as one of the top three global automotive markets, selling 4.76 million vehicles last year. Hyundai Motor Group sold a record 807,067 units in India, securing the second position after Maruti. This year, the company aims to sell 878,000 units, an 8.2 percent increase from the previous year.

The acquisition of the Talegaon plant is part of Hyundai Motor's strategy to strengthen its position in the rapidly growing Indian automobile market and prepare for the electric vehicle era. Hyundai Motor Group Executive Chair Chung Eui-sun recently visited Hyundai and Kia's R&D center in Hyderabad and the automobile plants in Chennai, where he discussed growth strategies with local employees. He emphasized the importance of delivering products that exceed customer expectations in a timely manner in order to establish a leading position in the market.

"This year will be a significant milestone in Hyundai's 27-year history in India," said Kim Eun-soo, executive vice president of Hyundai Motor India, Middle East & Africa Strategic Region. "With the full-scale operation of the Talegaon plant in 2025, we will establish a strong local production system and further expand our presence in the Indian market."