Hyundai Planning To Acquire General Motors' Talegaon Plant, Signs Term Sheet

Hyundai Motor India plans to take over the land and buildings as well as certain machinery and equipment at the Talegaon Plant.
1 mins read
13-Mar-23 11:17 AM IST
Hyundai GM Talegaon Acquisition.jpg
Highlights
  • Hyundai takes first step towards potential acquisition
  • New plant would become Hyundai's third production facility in India
  • Companies still to finalise an asset purchase agreement

Hyundai Motor India has taken the first step towards the potential acquisition of General Motor’s Talegaon production facility in Maharashtra. The company has signed a term sheet for the potential acquisition of certain “identified assets” at the facility.

In a statement, Hyundai said that the potential acquisition would be subject “to the signing of the ‘Definitive Asset Purchase Agreement’ and fulfillment of conditions precedent and receipt of regulatory approvals from relevant Government Authorities.”

The new plant will help Hyundai boost its production capacity in India with the firm’s current two facilities operating at full capacity.

Hyundai Planning To Acquire General Motors'

Post the acquisition Hyundai could move some of its model production to the new facility.

 

General Motors wound down operations at its Talegaon plant in 2020 while its sales operations were halted in 2017 in India. The plant had been subject to a takeover bid from Chinese firm Great Wall Motors (GWM) in 2020 with both companies signing an agreement for purchase. The sale of the plant was initially expected to have been completed by the end of 2020 though the term sheet was extended twice due to the delays in getting the central government's approval for foreign direct investment. The renewed term sheet expired in June 2022 with GWM opting to cancel plans for an India entry.

 

General Motors while having officially stopped production in 2020 has also been involved in a long legal dispute with its worker's union at the Talegaon Plant over severance. The workers union has been demanding the continuation of employment at the Talegaon plant under the new owner – a demand GM India has not met. The matter has been part of ongoing legal proceedings since 2021.

Newly Added Used Cars

line-horizontal
2020 Kia Seltos GTX Plus Petrol
moneybagFinance up to 85%
2020 Kia
Seltos GTX Plus Petrol
  • 22,000 km
  • |
  • Petrol
  • |
  • Manual
2 Year Warranty Free
0
7.8
10
17.00 LakhEMI starts @ ₹35,959

Mahindra First Choice, Bank Street, New Delhi
2017 Toyota Fortuner 2.8 4X2 AT BS IV
moneybagFinance up to 90%
2017 Toyota
Fortuner 2.8 4X2 AT BS IV
  • 72,907 km
  • |
  • Diesel
  • |
  • Automatic
2 Year Warranty Free
0
7.6
10
29.50 LakhEMI starts @ ₹66,070

Mahindra First Choice, Bank Street, New Delhi
2017 Audi A4 30 TFSI Technology
2017 Audi
A4 30 TFSI Technology
  • 23,123 km
  • |
  • Petrol
  • |
  • Automatic
1 Year Assistance Free
0
7.6
10
29.95 Lakh

Mahindra First Choice, Bank Street, New Delhi

Top trending

Certified Cars Banner