Hyundai Motor India has made a significant investment by paying Rs 787.2 crore to acquire General Motors’ (GM) Talegaon plant in Maharashtra. This acquisition, detailed in Hyundai’s draft red herring prospectus (DRHP) for its upcoming IPO, is a strategic move as the South Korean carmaker plans to commence production at the facility in the second half of the financial year 2026.
The commercial agreement to purchase the Talegaon plant was initially signed in August 2022, and the transaction was completed by December of the same year. The deal included the acquisition of the plant’s land, buildings, certain machinery, equipment, and the product distribution center warehouse previously operated by Chevrolet Sales India.
“We recently acquired the Talegaon Manufacturing Plant from General Motors India on December 28, 2023, which is under redevelopment and is expected to be operational in phases – with the first phase to be operational by the second half of fiscal 2026,” Hyundai India stated.
In addition to the initial purchase, Hyundai Motor India announced an investment of Rs 6,000 crore to develop the Talegaon facility. Sources from Autocar Professional suggest that the first model to roll out from this plant will likely be the next generation Venue, expected by the festive season of 2025.
Currently, Hyundai operates two integrated manufacturing plants in Sriperumbudur, Chennai, with a combined annual production capacity of 8,24,000 units. With the Talegaon plant becoming partly operational, Hyundai’s total production capacity in India will increase to 9,94,000 units per year. Once the plant is fully operational, the capacity is projected to reach 10,74,000 units annually.
Ho Jeong, appointed as the function head for production in Pune earlier this year, will oversee production operations at the Talegaon plant. Hyundai India has not disclosed a specific timeline for the second phase of the plant’s operationalization, stating that “the timing of the next phases will be determined based on market demand.”
Hyundai also mentioned its eligibility for the Maharashtra government’s Investment Promotion subsidy, which offers incentives equivalent to a portion of eligible investments made within seven years from April 1, 2023. The company can claim this incentive as a “Refund of Gross SGST paid to the Government” over a maximum period of 20 years.
Meanwhile, Hyundai India is focusing on developing its Chennai plant as a hub for electric vehicle (EV) and sport utility vehicle (SUV) production. The company’s current portfolio includes 13 passenger vehicles spanning sedans, hatchbacks, SUVs, and electric vehicles. Hyundai has introduced two electric cars in India—the Kona and the Ioniq 5—and is planning to launch an electric variant of its popular Creta mid-size SUV in early 2025, marking its foray into mass electric car production in the country.
This acquisition and the planned expansions underscore Hyundai’s commitment to strengthening its manufacturing capabilities and expanding its footprint in the Indian automotive market, particularly in the burgeoning sectors of electric and hybrid vehicles.
