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Hyundai Motor India, the country’s second largest carmaker, will invest Rs 7,000 crore in the inoperative General Motors plant located near Pune, Maharashtra deputy chief minister Devendra Fadnavis announced.
Fadnavis met managing director and chief executive officer of Hyundai
“They apprised me of Hyundai’s Rs 7,000 crore investment in Pune’s Talegaon. They also sought advice and assistance on various aspects and I assured them on behalf of our government of full support to ensure smooth implementation,” Fadnavis posted on social media platform X.
This will be the first investment in vehicle capacity creation by the South Korea-based company outside Tamil Nadu. The General Motors plant had a capacity of 130,000 units per annum and was one of the two plants set up by the US-based carmaker in India.
“They (Hyundai) are visiting Davos later next week to sign a MoU (memorandum of understanding) with the Government of Maharashtra. We are absolutely delighted and welcome Hyundai in creating a world class modern automobile manufacturing facility in Maharashtra,” Fadnavis added.
Earlier in August, Hyundai had signed an asset purchase agreement (APA) for the acquisition and assignment of identified assets related to the GM’s plant. The APA covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment.
The handover of the GM plant is subject to settlement with its erstwhile employees who have been protesting against the takeover. Hyundai has announced that it will start producing vehicles from the GM plant from 2025. If the plant comes under Hyundai’s fold, the fresh capacity addition will push Hyundai’s total capacity in the country to 1 million units per annum.
Hyundai produced 586,610 units of cars and SUVs from its Tamil Nadu-based plants during April-December during FY24, a year-on-year growth of 10% for the same period, as per data shared by the Society of Indian Automobile Manufacturers.
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