SEOUL, March 13 (Yonhap) -- Hyundai Motor Co., South Korea's leading carmaker, said Monday it is in the process of acquiring General Motors Co.'s car manufacturing facility in India.
Hyundai Motor has signed a term sheet with GM to take over the U.S. carmaker's Talegaon plant in Maharashtra, the company said in a statement.
A term sheet is a non-binding agreement on basic terms and conditions of an investment, and it is usually followed by more detailed, legally-binding documents.
"Hyundai Motor India is in the process of acquiring General Motors India's assets to supply a stable amount of vehicles in the rapidly growing Indian automobile market," the statement said.
The proposed acquisition is subject to regulatory approvals from the relevant government authorities, and the signing of the "definitive asset purchase agreement" and fulfillment of conditions of related parties, it said.
GM stopped selling cars in India in 2017. The Talegaon plant, established in 2008, has an annual production capacity of 130,000 units and 160,000 engines, with the production of export models continued at the plant till late 2020.
Hyundai has two plants in India with a combined output capacity of 760,000 units a year, and 150,000 units of them are being exported.
The maker of Sonata sedans and Santa Fe SUVs ranked second after Maruti Suzuki India Ltd. in terms of market share in India in 2022. Its sales rose 9.4 percent on-year to over 550,000 units last year.
Source: Yonhap News Agency