On Wednesday, Hyundai Motor India inked an asset purchase agreement (APA) for the purchase and assignment of specific assets at General Motor India's Talegaon facility in Maharashtra. According to a press release from the firm, the deal comprises the purchase and transfer of land, buildings, and certain machinery and production equipment at the Talegaon factory of General Motors.

According to the announcement, the purchase of the General Motors Talegaon factory is contingent on meeting a number of requirements and receiving regulatory permissions from the necessary government agencies and stakeholders. The Talegaon factory now has a 1,30,000 unit annual production capacity, and the deal hopes to increase that capacity.

“Since HMIL already has enhanced its production capacity from 750,000 units to 820,000 units in the first half of this year, the capacity augmentation of the GMI plant will lay the foundation for HMIL to produce around 1 million units a year,” the release read.

Hyundai Motor India MD and CEO Unsoo Kim said that manufacturing operations at the plant are scheduled to begin by 2025. “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,” Kim said.

Hyundai Motor India intends to make further investments in the Talegaon plant's manufacturing machinery and existing infrastructure in order to meet these goals.

Additionally, the automaker will reevaluate its intentions to introduce more electric vehicle (EV) models into the Indian market. The firm's Sriperumbudur factory will produce these EV models.

Hyundai Motor now holds the second-largest market share in India among all automakers and is ranked second overall. The automaker finished second overall among Indian auto brands with sales of 552,511 vehicles, accounting for a 14.5% market share. As of last month, HMIL has sold 346,711 vehicles this year, keeping its second-largest market share in India with a share of 14.6%.

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