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.
GM Talegaon facility in 2014
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.
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Comments
A win for Hyundai and a lousy move by GM, IF you believe all the reports that India is the next China.
@Beachy29579
Exactly
GM without the assistance of any Chinese manufacturers have no clue how to produce cheap vehicles.
Hyundai will learn, like GM did, that there are no skilled tradesmen in India. No Tinners, no pipefitters, no millwrights, no machine repairmen, no electricians, no toolmakers and no diemakers, all necessary to run auto plant. The caste system deems it disgraceful to do manual labor, even if it an important skill.
Soooooooo Tesla is in Deep talks to get into the Indian market with a new Gigafactory but GM is leaving?
This is GM Europe all over again.
I predict lonnie is going to deeply regret engaging with India.
Another Mary Barra blunder. Selling off for pennys on the dollar. Typical GM.
Why not fix the problem and produce a vehicle the market will buy? Stupid.
She needs to go.
Drain the swamp now!
Agreed … this is exactly what happens when bean counters and non-car people run a company. The public has been wanting a (1970’s) type of Chevy Luv small pickup, and a station wagon based on the current Chevy Malibu platform. What does GM do … produce more full sized pickups, an suvs … not exactly what the public wants, but what the public (at lease those who can afford it) has to buy because no one else produces what they want. I’ve watched Hyundai, yeah they’ve had their problems, but vehicles like the Elantra, Venue, an Santa Cruz pickup are selling. We need a new car, haven’t bought since 2009, and the Hyundai Venue fits our needs … but try to find one, a whole other game.
Her blunders would more than fill one sheet by now, with bypassing the hybrid market being the worse one. But she wisely astcked her cabinet with her yes people, so she’ll never be fired…
Another Mary Barra blunder. Selling off for pennys on the dollar. Typical GM.
Why not fix the problem and produce a vehicle the market will buy? Stupid.
She needs to go.
Another Mary Barra blunder. Selling off for pennys on the dollar. Typical GM.
Why not fix the problem and produce a vehicle the market will buy? Stupid.
Why not leave India when you can sell all the $100,000 Pickups you can make right here?
I’ve done business in India, and numerous other countries around the world. India is the absolute pits, the absolute worst place I’ve interacted with. The people are fine and I’ve worked with countless Indians in the US who are excellent. The government on the other hand is absolutely awful to deal with. And getting worse with the rise of Modi and oppression of anyone who is not Hindu. Smart move for gm to dump it on Hyundai.
I have to ask why so many Thumbs down on this story about GM leaving India Market.
For those with the Thumbs down is it because you think the Indian Market is not important and agree with GM giving up?
I would like to know the thinking.
I don’t think they are leaving the India market, and for a number of very good reasons, decided not to build in India.
Hyundai is getting it’s act together, my wife an I are looking at replacing two cars driven since ’09. The models we’re looking at are the Santa Cruz mini truck and the Venue. With Hyundai’s purchase of the India GM facility I’m thinking production capacity there will be more along the lines of the needs of that part of the world. Now … imagine Hyundai no longer has to divert production that will turn lose more models for the North/South American markets. As for GM … they (management) did it to themselves, their decision to produce way to expensive trucks an suvs hoping that the American public will buy them as it’s what is available has not grown into a problem … people don’t need them. People want “smart” vehicles, high quality, as well as high mpg numbers … Hyundai for instance, their Elantra is a great seller, as is the Santa Cruze, Sonata, an Venue. In closing those just mentioned vehicles are selling … Ford, GM, Chrysler/Dodge don’t have a thing to compete with them … and by mid ’24 you can count on that India plant will be making vehicles people actually want. We’ve driven domestics for over 50 years, but soon two new Hyundai vehicles will be in our garage.
GM needs to get out of china also.
The trick is to sell in India, not build in India and put up with a capricious gov’t. Build in the U.S. export to India.