Hyundai Motor Company announced on Wednesday that its Indian subsidiary Hyundai Motor India has acquired General Motors' plant in Talegaon, Maharashtra, India.
The plant purchase will allow Hyundai to increase its total annual production capacity in India to 1 million units from its existing capacities at the Chennai facility. Hyundai sold over 552,000 vehicles in India last year.
Financial terms of the deal were not disclosed. The acquisition of the Talegaon plant will enable GM's complete exit from India, where it stopped selling cars in 2017 due to declining sales.
GM had been looking to sell the Talegaon facility for a few years but talks with a potential Chinese buyer, Great Wall Motor, fell through in 2020 as regulatory approvals could not be obtained amid increased scrutiny of Chinese investments by the Indian government.
With the purchase of the Talegaon factory, Hyundai can now expand its production footprint in India to meet the growing demand. Thissolidifies Hyundai's position as the second largest carmaker in the country's automotive market.
