Hyundai Motor Keeps Close Watch on Talegaon Acquisition, Targets Production Commencement by 2025

Hyundai Motor India (HMIL) is actively monitoring developments at the recently acquired Talegaon plant from General Motors (GM), with plans to commence production at the facility by 2025. Tarun Garg, Chief Operating Officer of HMIL, revealed the company's ambition to reach a one-million production target, emphasizing the strategic importance of the Talegaon plant in achieving this goal.

Garg highlighted HMIL's impressive 9% growth in the past calendar year, expressing a commitment to expanding market share through the introduction of new products. The Talegaon plant is expected to play a crucial role in supporting this growth strategy.

In response to inquiries about the GM workers' union, Sandeep Bhegade, the union's President, disclosed ongoing negotiations with GM management. Approximately 900 ex-employees are in discussions regarding a smooth transition, and Bhegade conveyed optimism about reaching an agreement on compensation.

The Maharashtra government has reassured the GM workers that each of the 900 ex-employees will receive compensation of ₹25 lakh, and eligible candidates will have opportunities for absorption into the new company, HMIL.

Meanwhile, HMIL revealed its projections for the sales distribution, with SUVs anticipated to constitute 65% of overall volumes in 2024. Additionally, the company plans to introduce a mass-market electric vehicle (EV) next year, aiming for EVs to contribute 20% of total sales by 2030.

Garg emphasized the success of SUV sales, noting that they accounted for 60% of total volumes last year and are expected to increase to 65% this year. He highlighted the strong performance of the Creta model, with plans for further growth in the SUV segment with the introduction of the new Creta.

HBL