Hyundai expects the Talegaon plant to become operational in 2025.

Hyundai has completed the acquisition and assignment of identified assets at General Motors India’s Talegaon plant in Maharashtra. 

Hyundai recently signed a memorandum of understanding (MoU) with the government of Maharashtra at the World Economic Forum in Davos. The carmaker also committed to an investment of Rs 6,000 crore. 

The Talegaon plant has an annual production capacity of 1,30,000 units, which the company plans to expand further. Hyundai will make phased investments to upgrade the existing infrastructure and manufacturing equipment at the facility. 

Hyundai expects the Talegaon plant to become operational in 2025.

Hyundai India aims to achieve a production capacity of 1 million units per annum.

Hyundai has announced the acquisition of General Motors' Talegaon plant. The Asset Purchase Agreement (APA) has been signed by the two parties. The completion of the acquisition and assignment is subject to regulatory approvals.

GM's Talegaon plant currently has an annual production capacity of 1,30,000 units. Reports suggest that Hyundai plans to expand it by investing more than Rs 5,000 crore over the coming decade.

Together with its Sriperumbudur unit near Chennai, Hyundai India aims to achieve a production capacity of 1 million units per annum. According to the company, manufacturing operations at the newly acquired facility are planned to commence in 2025.

In 2017, General Motors terminated its operations in India. Since then, the company has been on the lookout for a suitable buyer. In 2019, GM entered into negotiations with China's Great Wall Motors. However, these failed to reach fruition due to regulatory hurdles.

Another brand that’s in the race to take over the facility is MG Motor India.

According to a media report, Mahindra is evaluating the possibility of acquiring General Motors’ factory at Talegaon, near Pune.

It has been reported that Mahindra executives have been visiting the Talegaon plant over the past few weeks, just as GM’s term sheet with Great Wall Motors (GWM) expired on June 30, 2022.

Another brand that’s in the race to take over the facility is MG Motor India. However, being a Chinese-owned brand, the deal may not get priority.

It’s been 5 years since GM announced its exit from the Indian market. The carmaker’s Halol unit was acquired by MG, while GWM had shown interest in taking over the Talegaon unit. However, due to the recent border tensions, Chinese investments have come under intense scrutiny, which even led to GWM scrapping its plans.

General Motors is not the only American carmaker to wrap up its India business in recent years. Ford too has shut shop and is selling its assets in India. The blue oval's Sanand unit has been acquired by Tata Motors.

Source: ET Auto

General Motors claims that the lay-off has been declared because of the Covid-19 pandemic. The company claims that it will pay the employees a compensation, which is 50% of the basic wages and dearness allowance previous monthly take home.

General Motors India has laid off 1,419 employees at its plant in Talegaon, near Pune. The company sent notices to all the concerned employees through an email, a copy of which was sent to the secretary and president of the General Motors Employees Union. The employees union is likely to challenge this move legally.

The company claims that the lay-off has been declared because of the Covid-19 pandemic which is a natural calamity and no prior permission is necessary for it under section 25-M of the ID Act. It has intimated the Additional Commissioner of Labour, Pune about the lay-off due to the pandemic.

The employees are entitled to receive compensation under Section 25-C of the Industrial Dispute Act 1947. The company claims that it will pay the compensation, which is 50% of the basic wages and dearness allowance previous monthly take home.

General Motors has claimed that despite not manufacturing vehicles for the past four months, it has continued to pay its employees. Since December 2020, it has been incurring a monthly outgo of Rs. 10 crore towards employees’ salaries. The company has also claimed that it has offered employees a separation package well in excess of the statutory requirement.

Production at the Talegaon plant ceased on December 24, 2020. General Motors claims to have given its employees and the union more than a year’s notice regarding the same.

Source: ET Auto

General Motors has decided to shut down its Talegaon manufacturing facility - its last factory in India a day before Christmas. This move will bring an end to the American company's operations in the country which started in 1996. In 2017, General Motors had sold its Halol factory to another Chinese company, SAIC. The latter is using it to manufacture cars under the MG brand.

General Motors and China's Great Wall Motors had announced a deal in January 2020 under which, the latter would buy out the Talegaon plant. General Motors was looking to sell its plant to the Chinese carmaker for more than Rs. 2,000 crore. However, 20 Indian soldiers were martyred in an encounter with the Chinese earlier this year. Tensions between India and China have been high since the incident and the Government of Maharashtra has put the deal between General Motors and Great Wall Motors on hold.

With the deal stalled, General Motors has no option but to shut down the plant which employed 1,800 people and built cars to be exported to Mexico. The American company will have to fund the closure liabilities on its own. It will have to pay for the severance payout to workers and also require an approval from the state government for layoffs.

Source

According to media reports, General Motors could sell its manufacturing plant in Pune to JSW Energy Ltd. for about Rs. 3,500 crore as the latter plans to enter the automotive business with a new electric car priced in the Rs. 12-15 lakh range.

GM's last remaining manufacturing unit in India is based at Talegaon near Pune. It is spread across 300 acres and has an annual capacity of 1,30,000 units. Currently, the factory produces the Beat hatchback for export markets. Reports suggest that the factory is valued between Rs. 3,000-3,500 crore, which includes the cost of the land, engine assembly line and car assembly line.

While it has been reported that the JSW Group is in talks with GM to buy the plant, neither of the parties have confirmed this. Apparently, the French PSA Group was also interested in purchasing the plant at one point. Meanwhile, GM's Gujarat plant has already been acquired by MG Motor India.

Source: LiveMint

Chevrolet has confirmed that it will make a new investment of US$ 1 billion (Rs. 6,400 crores) in India. The announcement was made in Delhi during General Motors (GM) CEO Mary Barra’s second visit to the country in 12 months. The company has already invested US $1 billion in India since 1996.

According to the company, the new investment is expected to create approximately 12,000 new jobs for GM India and its suppliers. The company also plans to increase product localization and expand its dealer network in the country.

The majority of the new investment will be used to strengthen the company’s manufacturing facility in Talegaon. At present, the facility has a yearly production capacity of 1,30,000 vehicles. The company plans to increase this number to 2,20,000 units by 2025. It aims to make the plant a global export hub for GM, with more than 30% of its annual production planned for markets outside India.

The GM India plant at Halol, Gujarat will stop producing cars by the second half of 2016.

This investment is a part of the US$  5 billion investment that Chevrolet had announced for the development of an all-new vehicle family for Brazil, China, Mexico and India. The new global vehicle family will have several different body styles. The vehicles will be manufactured and sold in India and will be exported worldwide. However, there are no plans to export these cars to developed markets such as the US.

Chevrolet is aiming to double its market share in India by 2020. It plans to roll out ten new locally produced Chevrolet models within the space of five years. They include the Trailblazer SUV, which will go on sale in October 2015, and the Spin MPV, which will be launched in early 2017.

Isuzu India has appointed Hindustan Motors to handle assembly operations of completely knocked down (CKD) kits of the D-Max pick up truck and MU-7 SUV as an interim measure until 2016, when Isuzu's greenfield factory at Sri City, Andhra Pradesh, will be ready to begin production. The Japanese pick up truck and SUV maker is also said to be considering outsourcing engine assembly to American car maker General Motors's Indian division. 

The diesel engine that General Motors India could manufacture for Isuzu will be based on the design and specifications provided by the latter. According to a report on Nikkei, Isuzu is said to be looking at sourcing 100,000 diesel engines per year, from General Motors India. Isuzu's factory at Sri City, which will begin production by 2016, will have a yearly capacity of 120,000 units. The facility is expected to produce the D-Max range of pick up trucks and the Mu-7 SUV.

The D-Max pick up truck range will be heavily localized. The pick up trucks will be aimed at the Indian and African markets. From the numbers, it seems like the diesel engines produced by General Motors India could be used mainly on the D-Max range of pick up trucks. General Motors India has an engine factory at Talegaon, off Pune. The Talegaon factory has a capacity of producing 160,000 engines a year, in both petrol and diesel guises.

The flexible engine factory can be expanded to produce an additional 140,000 engines each year. Given General Motors India's current monthly sales numbers of well under 10,000 units, the car maker seems to be well poised to cater to Isuzu's demand for 100,000 diesel engines per year from its Talegaon engine facility. Notably, General Motors India has outsourced diesel engines of the Tavera MUV to ICML Sonalika and AVTEC Limited.  General Motors's association with Japanese automaker Isuzu goes a long time back.

The American automaker took a 49% stake in Isuzu, in 1971. In the past, both automakers have worked on joint product development. In 2006, General Motors exited its Isuzu stake. However, the automakers continued to partner for many products such as the Chevrolet Tavera (A rebadged Isuzu Panther) sold in India. GM and Isuzu also joined hands to develop the 2011 D-Max pick up truck. The latest GM-Isuzu tie up could center around turbo diesel engines for the D-Max range to be built in India. 

Isuzu currently has two operational dealerships in India, at Coimbatore and Hyderabad. The third dealership, at Chennai, is expected to come up shortly. By the end of 2013, Isuzu plans to have 10 dealerships in India. The number will be expanded to 60 by 2016, the year which Isuzu plans to commence production at its greenfield manufacturing facility in India. Until Isuzu's greenfield factory comes up, Hindustan Motors's Tiruvallur facility will assembly 300-500 units of the D-Max and MU-7 each month, starting from December 2013.