The Term sheet covers the proposed plan of action for the Talegaon Factory of General Motors India for the acquisition of Land, Structures, etc
Hyundai is a popular brand in India with an expansive range of products in its lineup. On Monday, the Korean automaker and General Motors India signed a “Term Sheet” for the purchase of the Talegaon factory stating the proposed purchase of land, structures, and specific machinery and equipment for the plant’s manufacturing, Hyundai noted in a statement.
“The proposed acquisition is subject to the signing of the ‘Definitive Asset Purchase Agreement’ and fulfilment of conditions precedent and receipt of regulatory approvals from relevant Government Authorities and all the stakeholders related to the acquisition,”
The proposed acquisition is subject to the execution of the Definitive Asset Purchase Agreement, the satisfaction of prerequisite requirements, and the receipt of regulatory approvals from the pertinent government authorities and all relevant stakeholders.
General Motors, which had operated in India for more than 20 years, ceased automobile sales at the end of 2017 as part of its global restructuring efforts. Due to a lack of customer demand, the company had to close, and the American car giant is currently embroiled in a court battle with the employees who want a voice in the ownership transition.
This came to light when the automaker Hyundai was recently interested in buying the Ford India plant in Sanand, Gujarat, or Maraimalai Nagar, close to Chennai. However, the talks didn’t work out, and Tata Motors seized the opportunity and signed a contract to purchase it. Nevertheless, once its contract with Chinese automaker Great Wall Motors expired in June 2022, General Motors India began looking for a buyer.
The move also ensures that Hyundai is surely looking to expand its lineup and is preparing well in advance for it. This can be said as the outcome of the brand facing stiff competition from rival brands just below it in terms of sales, such as Tata, Kia and Mahindra, all of which have fresh and revamped line-ups. It aims to cement its leading position as the competition stiffens.