Hyundai paid Rs 787.2 crore to GM for Talegaon plant; Expects to start operations in H2 of FY26

Hyundai Motor India paid Rs 787.2 crore to General Motors (GM) to acquire its Talegaon plant in Maharashtra, the company said in its draft red herring prospectus (DRHP) for the IPO. The South Korean car maker now expects to start production at the plant during the second of the financial year 2026.

Hyundai India signed a commercial agreement in August last year to buy the plant from US carmaker GM, which exited India a couple of years back. The deal that was completed in December, included the purchase of the plant’s land and buildings, certain machinery, equipment, rights, interest and title, as well as the product distribution center warehouse of Chevrolet Sales India at the same plant.

“We recently acquired the Talegaon Manufacturing Plant from General Motors India on December 28, 2023, which is under redevelopment and is expected to be operational in phases – with the first phase to be operational by the second half of fiscal 2026,” Hyundai India said.

Acquiring the plant in early 2024, Hyundai Motor India had said the company will be investing Rs 6,000 crore at the Talegaon facility. Autocar Professional learns the first model to be produced out of the factory is likely to be next gen Venue by the festive season of 2025.

The automaker currently has two integrated manufacturing plants in Sriperumbudur, Chennai, which have a combined annual production capacity of 8,24,000 units. Once the Talegaon facility is partly operational, Hyundai said its total production capacity would increase to 9,94,000 units per year. The total capacity will further increase to 10,74,000 units once the plant is fully operational.

Ho Jeong, appointed as function head - production (Pune) earlier this year, is responsible for leading production operations in the Talegaon plant. The company did not disclose the timeline for operationalizing the second phase of the plant. “The timing of the next phases will be determined based on market demand,” Hyundai India said.

The company also noted that it is eligible for the Maharashtra government’s Investment Promotion subsidy equivalent to a certain level of eligible investments made within seven years from April 1, 2023. It is eligible to claim this incentive in the form of “Refund of Gross SGST paid to the Government” within a maximum period of 20 years.

Meanwhile, Hyundai India plans to develop its Chennai plant as a hub for electric vehicle and sport utility vehicle production. Hyundai India currently has a portfolio of 13 passenger vehicles across sedans, hatchbacks, SUVs and electric vehicles. It has introduced two electric cars - Kona and Ioniq 5 - in India and is yet to launch a mass electric car. The company is expected to launch an electric variant of its Creta mid-size SUV in early 2025.