Hyundai aims to achieve a cumulative production capacity of one million units per year through its plants in Sriperumbudur (Chennai) and the Talegaon plant.
The agreement covers the acquisition and assignment of land and buildings as well as certain machinery and manufacturing equipment situated at GMI’s Talegaon plant, the company said in a release.
Hyundai currently aims to increase its electric vehicle sales to 30 per cent of total car sales by 2030. The company also sold 5,52,511 vehicles in India last year, taking a 14.5 per cent share. It also sold 3,46,711 vehicles in 2023 until June, maintaining its second-largest share in the Indian market with a 14.6 percent share, it said.
“Earlier this year, Hyundai Motors India entered into a Memorandum of Understanding (MoU) to invest Rs 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 centre for cars made in India in Talegaon, Maharashtra,” Unsoo Kim, Managing Director and CEO of HMIL said.The company’s manufacturing operations are scheduled to begin in Talegaon in 2025.The deal will allow the U.S. automaker to exit India. GM stopped selling cars in the country in 2017 after years of dwindling sales but its complete exit from the market has been marred by complications, including legal tussles with workers and failure to find a buyer for the plant.In 2019, GM agreed to sell the plant to China’s Great Wall Motor but talks collapsed last year after the companies failed to obtain regulatory approvals amid New Delhi’s increased scrutiny of investments from Beijing.
Automobile dealers’ body FADA has noted that there’s optimism about a rise in retails as the industry approaches the festive season. It noted that the inventory level in the PV segment has breached the 50-day mark in anticipation of the upcoming festival season. FADA however noted that the slowdown in entry-level cars remains and a larger concern is the IMD’s projection of a below-average rainfall in August, potentially leading to lower crop yields.
Data from SIAM showed that domestic passenger vehicle wholesales registered a 2.57 per cent year-on-year increase in July at 3,50,149 units. Dispatches of passenger vehicles (PVs) from manufacturers to dealers were at 3,41,370 units in July 2022.