In a significant development, Hyundai Motor India (HMIL) and its associated suppliers are prepared to jointly invest INR 10,000 crore in General Motors India’s (GMI) Talegaon plant located in Maharashtra, as reported by Business Standard.
This substantial investment follows the resolution of a worker-management dispute at General Motors. Hyundai and its partners are gearing up to infuse a total of INR 10,000 crore into the automotive manufacturing facility, which boasts an annual production capacity of 130,000 units.
Hyundai’s Acquisition of GM’s Talegaon Plant
Hyundai, the South Korean automotive giant, entered into an agreement to acquire GM’s Talegaon plant, encompassing land, buildings, machinery, and manufacturing equipment in August 2023. Production at this facility is expected to kickstart in 2025, pending specific conditions and regulatory approvals.
The operationalization of the plant and its associated facilities is poised to create approximately 4,500 direct and indirect employment opportunities.
A senior government official engaged in these discussions shared that Hyundai is committed to investing INR 5,000 crore, and additional investments are anticipated from its vendors and partners. This investment will unfold gradually, with the majority expected to materialize by 2028, potentially leading to job creation for the local workforce.
Hyundai’s Vision for the Talegaon Plant
Puneet Anand, Associate Vice President and Head of Corporate Affairs at Hyundai India, stated the company’s intentions to enhance the plant’s annual production capacity and align it with Hyundai Global Operating and Manufacturing Standards.
Notably, GM’s Employees’ Union organized protests due to concerns about worker transition to the prospective buyer. In response, the Maharashtra government has pledged support for the affected workers from the now-shuttered GMI plant in Talegaon.
Of the 1,578 employees at the GMI Talegaon plant, 696 have voluntarily resigned after receiving compensation from the company, while the remaining 882 are seeking improved compensation and potential job opportunities with Hyundai.
Hyundai, the second-largest car manufacturer in India, has not disclosed the acquisition cost of the plant. However, the company has articulated its plans to bolster production capacity by acquiring assets at the Talegaon facility, with the aim of reaching an annual output of 1 million units.