SEOUL, March 13 (Yonhap) — South Korea’s leading automaker Hyundai Motor Co. said Monday it is in the process of acquiring General Motors Co.’s vehicle manufacturing facility in India.
Hyundai Motor has signed a term sheet with GM to acquire the American automaker’s Talegaon plant in the Indian state of Maharashtra, the company said in a statement.
A term sheet is a non-binding agreement on the basic terms and conditions of an investment and is usually followed by detailed legal documents.
“Hyundai Motor India is in the process of acquiring General Motors India’s assets to provide a stable number of vehicles to the fast-growing Indian automobile market,” the statement said.
The proposed acquisition is subject to regulatory approvals from relevant government authorities, signing of a “definitive asset purchase agreement” and fulfillment of conditions by the parties involved.
GM stopped selling cars in India in 2017. Established in 2008, the Talegaon plant has an annual production capacity of 130,000 units and 160,000 engines, while the plant continued to produce export models till the end of 2020.
Hyundai has two plants in India with a total production capacity of 760,000 units per annum, of which 150,000 units are exported.
In 2022, Santa Fe, maker of Sonata sedans and SUVs, was second only to Maruti Suzuki India Ltd in terms of market share in India. Its sales rose 9.4 percent last year to over 550,000 units.
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