Hyundai Motor Company is acquiring General Motors (GM)'s plant in India.
On the 13th (local time), Hyundai Motor India announced that it has signed a legally binding term sheet regarding the acquisition of GM's Talegaon plant in Maharashtra.
A term sheet is generally prepared before the main contract to specifically assess the investment target, such as land and buildings.
If Hyundai acquires GM's plant in India, it will secure a production facility with an annual capacity of 900,000 units in India. This is the first time Hyundai has pursued the acquisition of a local plant since establishing its Indian subsidiary and entering the market in 1996.
Hyundai established its first plant in Chennai, southern India, in 1998, and built a second plant in 2008. The current production capacity is about 760,000 units per year.
In 2021, Hyundai also achieved a cumulative production volume of 10 million units. Hyundai's Chennai plant set the record for the fastest time to reach 10 million units among Indian automobile manufacturers.
The Indian automobile market is growing every year, ranking as the third largest global automobile market after China and the United States. Currently, Hyundai holds the second largest market share in India, following Maruti Suzuki. Recently, Hyundai started pre-bookings for the new 6th generation Verna, challenging for the number one market share.
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