Hyundai Motor Corp., South Korea’s largest automaker, is on the brink of acquiring the General Motors-owned Talegaon plant in India, which has been a source of production for the automaker for nearly a decade.
The move would expand Hyundai’s presence in the growing Indian market, where it is already the second-largest carmaker.
The acquisition of the Talegaon plant, located in the western state of Maharashtra, would give Hyundai a competitive edge in the Indian market, as the plant has been producing cars for the automaker since 2009.
The Talegaon plant, which was acquired by GM in 2003, is capable of producing up to 300,000 vehicles a year and has an annual capacity of more than 1 million engines.
The plant has been operating as a joint venture between GM and Hyundai since 2009, with Hyundai supplying components and GM supplying parts, technology and know-how.
The acquisition of the Talegaon plant is expected to be completed within the next few weeks, according to sources familiar with the matter.
The deal is expected to be valued at around $450 million and will see Hyundai become the sole owner of the Talegaon plant.
The acquisition of the plant would give Hyundai access to production facilities that could help it expand its presence in the growing Indian market.
It would also give the automaker access to GM’s advanced technologies and production processes, allowing it to produce vehicles more efficiently.
The acquisition of the Talegaon plant is a strategic move for Hyundai, as the Indian market is one of the fastest-growing automotive markets in the world, and the automaker is looking to capitalize on the growth of the market.
If the acquisition of the Talegaon plant is completed, it would be the latest in a string of strategic moves by Hyundai to strengthen its presence in the Indian market.
The automaker has already invested heavily in India, and the acquisition of the Talegaon plant would give it an even greater foothold in the country.