India unit of Hyundai Motor is purchasing the General Motors’ (GM.N) plant in Talegaon, Maharashtra. The company announced signing an Asset Purchase Agreement on Wednesday.
The APA covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment situated at GMI's Talegaon plant. The plant currently has an annual production capacity of 130,000 units
This acquisition, along with Hyundai’s Sriperumbudur facility outside Chennai city, is expected to boost the South Korean automaker’s total production capacity to 10 lakh units per year. Hyundai, the second-largest carmaker by sales in India, sold 552,511 vehicles in the country last year.
The deal’s financial details remain undisclosed. However, it will allow General Motors to exit the Indian market, where it stopped selling cars in 2017 due to declining sales. The U.S. automaker’s complete exit has faced several challenges, including legal disputes with workers and finding a suitable buyer for the plant.
In 2019, GM planned to sell the plant to China’s Great Wall Motor. However, the deal fell through due to failure in securing regulatory approvals amidst heightened scrutiny of Beijing’s investments by New Delhi.
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