Hyundai Motor lines up to buy General Motors plant in India

Hyundai Motor Co. It said on Monday it has agreed to a possible acquisition of General Motors’ India plant, a move that could finally allow the American automaker to exit a country where it stopped making vehicles in 2017.

A final agreement is subject to the fulfillment of certain conditions, including obtaining “regulatory approvals from relevant government authorities and all interested parties involved in the acquisition“, said Hyundai it’s a statement.

GM stopped selling cars in India in 2017 after years of dwindling sales, but its full exit from the market was marred by complications, including legal disputes with workers and the inability to find a buyer for the plant, located in the western state. from Maharashtra.

In 2019, GM agreed to sell the plant to China’s Great Wall Motor, but talks fell apart last year after the companies failed to win regulatory approvals amid increased scrutiny from New Delhi over investment from Beijing.

GM and factory workers – alleging illegal dismissals following the company’s decision to leave – have also been locked in legal battles since 2021. In the latest setback, in January, a union sued GM’s Indian unit and its chief executive. worldwide for failing to pay court-ordered severance payments to workers fired from the factory.

GM previously said its employees were legally separated and that it remains confident in its legal position.

India has been a tough battleground for Western automakers, especially American ones, which have struggled to break the dominance of the Japanese suzuki engine and the South Korean Hyundai Engine, which together hold 60% of the market share. Like GMFord Motor , also ceased operations in India.

This acquisition will give Hyundai a second plant in India, allowing it to increase its production capacity at a time when it plans to launch six electric vehicles in India by 2028.

Source: Reuters