INDIA REPORT
The agreement covers the acquisition of land and buildings and certain machinery and manufacturing equipment at the General Motors India, Talegaon plant. The proposed acquisition is subject to the signing of a definitive asset purchase agreement, other certain conditions and receipt of approvals from government authorities and stakeholders.
Source: Economic Times Read The Article
PSR Analysis. Hyundai is expected to expand its annual production capacity in India to some 900,000 units–760,000 units in its two existing plants and 130,000 units in the GM plant. Combined with production volume of its smaller Kia’s two plants in India, the total production capacity of Hyundai Motor Group could surpass 1 million units per year.
With the planned acquisition, the Korean carmaker is betting big on the growth potential of the Indian car market. Last year, car sales in India jumped 25.7% to 4.7 million vehicles, the third largest globally after China and the US. In the burgeoning Indian market, Hyundai is the No. 2 brand with almost 10% market share.
This investment is part of Hyundai’s commitment to invest approximately US$ 52 million (Rs 4,000 crore) through 2028 to further its plans of launching six electric vehicles (EVs) in the country.
We believe the company will accelerate sales of car models ranging from small sedans and sport utility vehicles to electric cars and will continue addressing the global market from India. Hyundai is likely to manufacture the Venue compact SUV at the Talegaon plant and may use it as a base for made-in-India vehicle exports. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research
