Hyundai Motors is a South Korean company, and an automobile giant in India, which is all set to buy the unit of another automaker, General Motors which is operating in the state of Talegaon in Maharashtra, made this specific announcement on Wednesday, 16th August, 2024.Â
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Introduction
The top car manufacturers of India include, Maruti Suzuki, Ashok LeyLand, Hyundai Motor Company, Tata Motors, Mahindra and Mahindra, Kia Corporation, Toyota Motor Corportaion, Honda, Renault, MG Motor, and Skoda Auto.
Of all the corporations, Maruti Suzuki is the major dominant in the automobile industry, having a market share of 44.2 percent. Hyundai Motors and Tata motors are second and third leading car manufacturers after Maruti Suzuki, with market share of 14.5 percent and 13.2 percent respectively.
On the other hand, General Motors, or GM is an American based automotive manufacturing corporation, which is headquartered at, Detroit, United States or the U.S.Â
The Agreement between the companies
Through the plants set up in Sriperumbudur district in Chennai, along with the plant in Talegaon, Hyundai has claims of targeting to achieve a cumulative production capacity of 1 million units per year.
The agreement covers acquisition and assigning land and building along with certain machinery components and manufacturing equipments placed at the General Motors’ Talegaon plant, as per the statement made by company in the press release.
However, the deal value has not been mentioned by the company yet.Â
Achievements of Hyundai Motors
Moreover, the Hyundai corporation has aimed to increase the sale of electric vehicles, to near figure of 30 percent of the total sales of cars. The milestone is expected to be achieved by 2030.
In relevance of the already achieved milestones, the company has sold about 5 lakh vehicles , in last year in India, which makes up a 14.5 percent share.
As for the current year, nearly 3 lakh sales were achieved by the company in 2024 , records made until the month of June. Hyundai India sales in January 2022 stood at 44,002 units.
Background of the General Motors and the agreement
The General Motors automotive manufacturing corporation was the worlds largest automaker and held onto the position for about 77 years. However, it los its sale and market to Toyota in 2008.
This deal will enable the GM company, to make a complete exit from India.
Earlier, its complete elimination from the market was at a stop due to some complications, obstacles in legal procedures and issues with workers, as well as a lack of buyer of the company unit. GM had already stopped selling cars in the nation after witnessing dwindling sales in 2017.
Further, in 2019, the General Motors had agreed to sell the plant to the china’s great wall motors, but the agreement could not be accomplished last year, as the company could not obtain regulatory approvals amid New Delhi’s increased security to avoid investments and flow from Bejieng.
The Mnagaing Director and CEO of Hyundai Motors India Limited, HMIL, Unsoo Kim, said that in the first half of this year, Hyundai Motors of India had entered into MoU or the Memorandum of Understanding in relevance to make an investment of about Rs 20,000 crore in Tamil Nadu for expansion of capacity as well as establishment of electric vehicles ecosystem.Â
The company also commits to Atmanirbhar Bharat or Self reliant India, with claim of creating an advance manufacturing centre at the bought plant of Talegaon, Maharashtra.
