More companies throw hat in the ring to buy GM India plant

GM had in January 2022 decided to halt manufacturing, stop investing and close the Talegaon plant. The company has been working on the sale of the plant since January 2020. The company was also not able to conclude a separation package for the workforce and it has since then gone into litigation.

According to sources, a Hyundai Motor India team visited the GM premises and was exploring a possible deal.

More companies could be joining the fray for acquiring General Motors’ car plant in Talegaon, Pune. After the Mahindra Group and MG Motors, Hyundai Motor India is the latest company to show interest in acquiring the GM plant.

According to sources, a Hyundai Motor India team visited the GM premises and was exploring a possible deal.

When contacted, Hyundai Motor denied this development and said it was false information and had been floating for the past one year.

Also Read| Mahindra & Mahindra may acquire GM’s Talegaon factory

General Motors and Mahindra Group have been exploring options for the sale of the site. GM’s $300-million deal with Chinese automotive company, Great Wall Motors (GWM), for selling the Talegaon plant failed to secure regulatory approval from the Indian government because of a geopolitical tension with China. General Motors dropped the plans to sell the plant to GWM.

GM India did not confirm these developments or comment about potential sale. “GM is continuing to explore options for the sale of the site. The plant remains a well-maintained state-of-the-art industrial site, with strong linkages into supply chain and transport networks,” the company statement said.

GM had in January 2022 decided to halt manufacturing, stop investing and close the Talegaon plant. The company has been working on the sale of the plant since January 2020. The company was also not able to conclude a separation package for the workforce and it has since then gone into litigation.

The GM plant in Talegaon is spread across 300 acres and has the capacity to produce 1,65,000 vehicles and an engine plant to make 1,60,000 engines. GWM had signed an MoU with the Maharashtra government for investing around $1 billion but this was put on hold in June 2020.

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First published on: 21-08-2022 at 03:30 IST
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