On Wednesday, the Hyundai Motor India Limited made an announcement about it signing an Asset Purchase Agreement (APA) for the acquisition and assignment of General Motors India’s related identified assets.
The signing ceremony, which was held in Gurugram, Haryana saw participants like Unsoo Kim, Managing Director and CEO of Hyundai Motor India Ltd., and Asifhusen Khatri, Vice President Manufacturing of General Motors India and General Motors International Operations.
While making the announcement of signing of the APA, Unsoo Kim said, “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 INR 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 center for cars made in India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra, in 2025.”
The APA shall relate to the acquisition and allocation of land, buildings as well as a number of machinery and production equipment located at GMI Talegaon. Certain conditions precedent and the receipt of legal consents from relevant state authorities and interested parties shall be fulfilled in order to complete acquisition and assignment.
As reported by sources, at present, there is an annual production capacity of 130,000 units at GMIs Talegaon. HMIL intends to increase its annual production capacity once the agreement is concluded, with a view to achieving its strategic objective on the market.
The company plans to launch more EV models on the Indian market, which are made at its Sriperumbudur plant, will be reviewed in order to accelerate India’s electrification goals. The company believes that this agreement will contribute to improving the competitiveness of its business on the market, as well as strengthen its position in India’s automobile industry.
According to reports, HMIL intends to make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon Plant. In order to ensure the production of vehicles that demonstrate excellence in production, these investments aim to bring the plant into line with the global operating and manufacturing standards of the Hyundai Group.
