Since then, GM has continued to explore the possibility of sale of the plant, and it now looks like life could finally be brought back into the facility. The Term Sheet signed by Hyundai covers the proposed acquisition of the land and buildings, as well as machinery and equipment for manufacturing vehicles.
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As per an official announcement made by the company, “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”.
Back in January 2020, China’s Great Wall Motors (GWM) and General Motors had signed an agreement for the purchase of the Talegaon plant as a part of the Chinese manufacturer’s plans to enter the Indian market. However, the deal fell through last year after having extended the term sheet twice.
While the deal between the two carmaking giants is yet to be finalised, Hyundai Motor India could use the Talegaon plant as its first dedicated EV manufacturing plant. The company had previously revealed its plans of increasing its production capacity 8.2 lakh units annually from June this year. As of now, the Korean manufacturer has two manufacturing plants in Irungattukottai and Sriperumbudur in Tamil Nadu.