Following resolution of dispute between the workers and management of General Motors, Hyundai and its partners are expected to invest a total of ₹10,000 crore in in the automotive plant, it added. The manufacturing facility has the capacity to produce 130,000 units annually.

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The South Korean auto maker had signed an agreement to acquire the land, buildings, machinery, and manufacturing equipment of GM’s Talegaon plant in August 2023. And production at this facility is scheduled to commence in 2025, pending the fulfillment of certain conditions and regulatory approvals.

Jobs creation

Operationalisation of the plant and vendors’ facilities is expected to create around 4,500 direct and indirect jobs.

A senior government official involved in the discussions told the paper that Hyundai is expected to invest ₹5,000 crore, with additional investments set ot come from its vendors and associates. This investment is planned to occur in phases, with the majority expected by 2028, potentially creating jobs for the local workforce.

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In a statement to the paper, Puneet Anand, associate vice-president and vertical head of corporate affairs at Hyundai India said the company plans to expand the plant’s annual production capacity and bring it up to Hyundai Global Operating and Manufacturing Standards.

Unions on Protest

Notably, GM’s Employees’ Union organised protests against the non-absorption of workers by the future buyer, while the Maharashtra government has expressed its commitment to supporting the workers of the now-closed GMI plant in Talegaon, the report added. 

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Out of the 1,578 employees at the GMI Talegaon plant, 696 have resigned after receiving compensation from the company. The remaining 882 are looking for higher compensation and potential job opportunities with Hyundai.

The second-largest car maker in India, Hyundai has not disclosed the amount it will pay to purchase the plant. The company has however expressed plans to increase its production capacity further by acquiring the assets at the Talegaon plant, potentially reaching 1 million units annually.

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Updated: 23 Oct 2023, 01:35 PM IST