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| 현대자동차그룹 사옥 (사진 = 현대자동차그룹) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Motors is seeking to acquire an auto plant there for the first time since entering the Indian market in 1996.
Hyundai Motor's Indian subsidiary said on the 13th that it has signed a legally binding sheet in connection with U.S. automaker General Motors' acquisition of its Taleghaon plant in Maharashtra.
A term sheet shall be prepared when ascertaining the situation of investment, such as land, buildings, production facilities, etc., prior to the main contract.
From Hyundai's point of view, it is the first step toward acquiring GM's Indian plant.
This is the first time Hyundai Motor is seeking to acquire a foreign company's plant in India since it entered the Indian market in 1996.
Hyundai Motor is seeking to acquire GM's Indian plant because it lacks production facilities compared to the size of growth in the local auto market.
In fact, the Indian auto market sold 4.725 million units last year, while Hyundai Motor's annual production capacity in India is only about 760,000 units.
Once the acquisition is completed, annual production capacity is expected to increase to 900,000 units.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
