Monday, March 13, 2023
By Kamal Swami
HMIL Intiates The Acquisition Of GM Motor’s Talegaon Plant
General Motors, the US-based carmaker which stopped its production activities in India back in 2017 is once again making its place in the news. Well, if you think that the company is again going to restart its production activities, then you are wrong. The company shut down its production unit in Halol Gujarat, in 2016 but continued its operations at the Talegaon plant in Maharashtra. According to recent reports, the Korean car maker Hyundai Motors is going to acquire the plant and has initiated the process by signing a Term Sheet with GM Motors.
Before the Korean carmaker, the Chinese carmaker Great Wall Motors had shown its interest in acquiring the Talegaon unit, but before anything could happen, GM Motors quit the Indian car market. Since then the Talegaon production unit is waiting for a new owner. Interestingly, the Korean carmaker Hyundai has moved ahead in this direction.
The Korean carmaker has its production unit in Tamil Nadu, where it manufactures multiple cars for domestic as well as International markets. Industry experts believe, that acquiring the Talegoan plant will help Hyundai Motors to expand its production activities. Now after officially signing the Term Sheet with GM Motors, the company is all set to sign a “Definite Asset Purchase Agreement” with the American carmaker. By signing this agreement, the buyer has to comply with the conditions mentioned in the agreement, with approval from the government and stakeholders.