GM will sell its Talegaon plant in India to South Korean automaker Hyundai. The sale will allow GM to finally exit India after The General struggled for years to sell the Talegaon plan. Hyundai will upgrade the facility for new-vehicle production, which is currently scheduled to begin in 2025.
According to a recent report from Reuters, Hyundai’s purchase of the GM Talegaon plant will enable the South Korean automaker to increase its cumulative annual production capacity to one million units. Hyundai reportedly had a production capacity of 820,000 units in the first half of the 2023 calendar year. The GM Talegaon plant currently has an annual production capacity of 130,000 units. Hyundai declined to provide a deal value for purchase of the GM Talegaon plant.
The Talegaon plant sale to Hyundai will enable GM to finally exit India. The General withdrew from the Indian auto market at the end of 2017 after declining auto sales. Following the withdrawal, GM moved to sell another of its India-based manufacturing facilities to Chinese automaker SAIC Motor Corp. GM was later poised to sell its Talegaon plant to Chinese automaker Great Wall Motor, but shortly after a deal was inked in April of 2020, the Indian government placed heavy restrictions on Chinese investments, creating several roadblocks to the sale’s fulfillment. The restrictions were exacerbated by violence between India and China, while the COVID-19 pandemic added additional confusion and chaos.
GM announced the deal with Great Wall Motor as defunct late in June of the 2022 calendar year. GM was expected to receive $300 million for the sale.
Looking ahead, Hyundai has announced plans to launch additional electric vehicles in India, offering the new models under the Hyundai and Kia brands. India is the third largest auto market in the world behind the U.S. (second largest) and China (first largest). Hyundai plans to invest $2.45 billion to bolster its EV production efforts in India.