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Hyundai purchases General Motor’s Indian factory

The South Korean brand has bought the GM factory located at Talegaon, Maharashtra, in a bid to increase its productivity and market share in the region.

Earl Lee on Aug 18, 2023

Hyundai Motor India celebrates another milestone in its history, and the brand’s global thrust to offer its cars to customers around the world. This year, Hyundai has been in India for 27 years, and the Korean brand is dedicated to making cars for the market and putting in more resources towards a brighter future in the region.

"This year is a significant milestone for Hyundai Motor India as we celebrate 27 years of activity in the market. Demonstrating our dedication to India earlier this year, HMIL entered into a Memorandum of Understanding (MoU) to invest INR 20,000 crore in Tamil Nadu for expanding capacity and establishing an electric vehicle ecosystem. As we reinforce our commitment to ‘Atmanirbhar Bharat’ (Self-Reliant India), we intend to create an advanced manufacturing center for cars made in India in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in Talegaon, Maharashtra,

Unsoo Kim
Managing Director, Hyundai Motor India Ltd.

The significance of this deal is that Hyundai will have another facility to expand its production capacity in the region. Currently, annual production estimates for Hyundai go up to 820,000 units, but the new plant will bring that total up to 1,000,000 units per year. The Talegaon plant is expected to expand its capacity and accommodate more models in the lineup, the likes of which also include those of the fully-electric variety not dissimilar to the IONIQ 5 and IONIQ 6 and it will have an estimated production capacity of 130,000 units per year.

Hyundai’s Global Operating and Manufacturing Standards will be a part of the success equation for Talegon, and those standards are also reflected in the neighboring plants that supply the demand for quality Hyundai cars in regions such as ours, the Philippines.

Hyundai Motor Philippines receives its units from South Korea and Indonesia, both of which adhere to the same standards that the Indian plants keep for their units.

As for the models in that region that we'd like to see (once again) in the Philippines, the Verna as it is called there, and the Accent as it was called in the Philippines, is a particularly popular model. Global availability for the sedan may be off the table at the moment, but it's not impossible to imagine the Accent/Verna plying Philippine roads once again, but that's just a wishful thought at the moment.

Hyundai manufactures up to 820,000 units in India annually. The addition of the 130,000-capacity Talegaon plant will expand its capacity to offer more models, including electric vehicles. After upgrading the Talegaon plant to make it up to par with Hyundai Global Operating and Manufacturing Standards, the annual production of all Hyundai plants in India is expected to hit 1,000,000 units.