Hyundai Motor India Limited (HMIL) on Wednesday signed an asset purchase agreement for the acquisition and assignment of identified assets related to General Motors India’s Talegaon plant in Maharashtra.

The company will begin production at the Talegaon plant in 2025, said HMIL managing director and CEO Unsoo Kim.

The APA covers the acquisition and assignment of land and buildings as well as specific machinery and manufacturing equipment situated at the Talegaon plant.

The completion of the acquisition and assignment is subject to the fulfilment of certain conditions precedent and receipt of regulatory approvals from relevant government authorities and stakeholders.

Announcing the deal, Kim said, “This year is a significant milestone for Hyundai Motor India as we celebrate 27 years of activity in the market. Earlier this year, HMIL entered into a memorandum of understanding (MoU) to invest Rs 20,000 crore in Tamil Nadu to expand capacity and establish an electric vehicle ecosystem.

“We also intend to create an advanced manufacturing centre for cars in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin in 2025.”

GMI’s Talegaon plant has an annual production capacity of 130,000 units.

Upon completion of the agreement, HMIL plans to expand its annual production capacity to achieve its strategic goal in the market.

Since HMIL already has enhanced its production capacity from 750,000 units to 820,000 units in the first half of this year, the capacity augmentation of the GMI plant will lay the foundation for HMIL to produce around 1 million units a year.

The company said it intends to make phased investments for the purpose of upgrading the existing infrastructure and manufacturing equipment at the Talegaon Plant.

These investments aim to bring the plant up to Hyundai global operating and manufacturing standards.

Unsoo Kim and Asifhusen Khatri, vice-president of manufacturing of General Motors India and General Motors International Operations, participated in the signing ceremony in Gurgaon, Haryana.