Hyundai Motor To Add A Third Manufacturing Plant In Its Arsenal Courtesy GM Motors

With this plant, Hyundai will be able to produce up to 10 lakh cars every year 

• Hyundai to acquire General Motors’ lands and buildings and certain machinery and manufacturing equipment. 

• The combined production capacity of its three plants will be up to 10 lakh cars a year. 

• The carmaker plans to start manufacturing operations at this plant from 2025. 

• With expansion, Hyundai is evaluating bringing new EVs to India. 

Hyundai has signed an asset purchase engagement (APA) to acquire General Motors’ (GM) plant in Talegaon, Maharashtra. With this new plant, Hyundai will have three manufacturing facilities in the country, including two in Sriperumbudur, Tamil Nadu. 

In this acquisition, Hyundai will take control of GM’s land and buildings as well as certain machinery and manufacturing equipment at the plant. With the new plant, the carmaker is targeting a production capacity of up to 10 lakh units a year, starting manufacturing operations from 2025. Currently, Hyundai’s production capacity runs at 8.2 lakh units a year, from its other two plants. The GM plant’s current capacity of 1.3 lakh units a year will be increased to meet the overall goal.

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The carmaker will further review plans to launch more EVs in India, which will be manufactured from one of its Tamil Nadu plants. With three plants, Hyundai can explore bringing more cars in India and also keep a check on the waiting period, while also growing its exports. While the APA has been signed, the completion of the acquisition is still subject to certain regulatory approvals and conditions that need to be fulfilled.

Hyundai currently has 13 cars on sale in India, including two EVs - IONIQ 5 and Kona electric. Models like the Creta, i20, and Kona EV are due for an upgrade, and we can see their new versions launching next year. 

Having announced plans to launch a new India-centric EV in the near future, a Hyundai Creta EV seems like a promising candidate as it has been spied testing multiple times. Besides that, Hyundai is expected to bring an MPV which will be priced similar to the Carens and will act as an alternative to the Toyota Innova. 

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The carmaker has held its spot as the second biggest name in the Indian auto industry for a long time now but it is being caught up by Tata. This acquisition and increased production capacity will also go a long way in helping Hyundai not only defend its market share but to grow it further as well.