Hyundai Motor's unit to buy General Motors' India plant

By Reuters   August 16, 2023 | 02:10 am PT
Hyundai Motor's unit to buy General Motors' India plant
Hyundai logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. Photo by Reuters/Wolfgang Rattay
South Korea's Hyundai Motor Co said on Wednesday its Indian unit will buy automaker General Motors' Talegaon plant in the Indian state of Maharashtra.

Through its Sriperumbudur facility outside Chennai city and now the Talegaon plant, Hyundai aims to increase its cumulative production capacity to one million units per year, it said. The company sold 552,511 vehicles in India last year.

Hyundai, India's second-biggest carmaker by sales, did not mention a deal value.

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.

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