Close on the heels of Tata Motors acquiring Ford’s plant in Sanand, another Indian firm is in news for potential talks about acquiring Indian assets of another US firm. There are talks about M&M potentially planning to acquire the US-based General Motors factory at Talegaon in Maharashtra. Just to remind our reader, the deal between Great Wall Motors and GM fell through as a result of ongoing geo-political tension between India-China.
While Tata Motors had acquired the Ford plant for approximately $100 million, industry experts are expecting under Rs 600 crore deal for the GM facility, around $60-75 million. Sources have been speculating based on Mahindra executives visiting the Talegaon facility.
There have been talks before as well, where MG was seen showing interest in acquiring the same GM factory.
Besides a comment from GM that states “GM is continuing to explore options for the sale of the site,” there is no official confirmation from any of the automakers yet.
Experts suggest, that if Mahindra can manage to make the deal with GM, it will turn out to be a cost-effective move and the facility is believed to fit the bill of the company’s hunt for a specific EV factory. M&M however, has already announced capacity expansion at its existing factory in Chakan and the GM’s Talegaon plant is just about 20 km from Chakan.
Given the dedicated roadmap to EV adoption, M&M is preparing itself for aggressive growth in the coming four to five years and expects electric SUVs to constitute 20-30% of its overall SUV portfolio by 2027, contributing volumes of 15,000-17,000 units a month and 200,000 units a year.
The company manufactured nearly a quarter million vehicles in the fiscal year ended March 31, 2022.