Hyundai Motor India Ltd (HMIL), on Monday said it has signed a ‘Term Sheet’ for the potential acquisition of identified assets related to General Motors India, Talegaon Plant in Maharashtra.

“The Term Sheet covers the proposed acquisition of -- land and buildings and -- certain machinery and equipment for manufacturing situated at General Motors India, Talegaon Plant,” the company said in a statement without disclosing the deal amount.

HMIL said the proposed acquisition is subject to the signing of the ‘Definitive Asset Purchase Agreement’ and fulfillment of conditions precedent and receipt of regulatory approvals from relevant government authorities and all the stakeholders related to the acquisition.

Read more: After India, General Motors turns its back on ASEAN 

Aims expansion

The company has been manufacturing its vehicles from a plant near Chennai for the last 26 years with a total capacity of around 7.50 lakh units per annum, including exports. It has been looking for expansion to cater to both growing demand in the domestic market as well as exports.

With stiff competition coming from companies such as Tata Motors, the company was expected to look for such acquisitions.

HMIL forms a critical part of Hyundai Motor Corporation’s (South Korea) global export hub. It currently exports to around 85 countries across Africa, West Asia, Latin America, Australia, and Asia Pacific. To support its growth and expansion plans, HMIL currently has 1,333 sales points and more than 1,494 service points across India.

Hyundai also has a modern multi-million-dollar research and development (R&D) facility in Hyderabad. The R&D centre’s endeavour is to be a centre of excellence in automobile engineering.

The General Motor plant in Talegaon has been in talks with several other manufacturers in the past. It was in talks with Chinese automaker Great Wall Motors (GWM) which was entering India, but could not go ahead due to geopolitical issues.

GM had earlier sold its other plant Halol (Gujarat) to another Chinese player SAIC, where it builds cars under its British brand, MG Motor.