After 21 years in India, General Motors stopped rolling out Chevrolet cars in the country as it ceased operations and pulled out in 2017, followed by another American automaker Ford. Although Ford's plant in Sanand was acquired by Tata Motors to make EVs last year, GM was still struggling to find a buyer for its plant. Now Hyundai, the only foreign carmaker with a sizeable market share in India, has stepped in to take over GM's plant near Pune.
Needs to settle matters with ex-GM employees
The plant, where GM used to assemble ICEV and produce powertrains, has been defunct since 2020. Now Hyundai will acquire land, the building and some of the machinery from GM, as part of the agreement. But before taking over, Hyundai will need clearance from authorities, and has to ensure a settlement for workers of General Motors who were laid off when the plant shut down.
What's the dispute?
General Motors Employee Union at the Talegaon plant have already approached Bombay High Court, accusing GM of contempt of court. The firm had been directed by Pune Industrial Court to pay 50 per cent wages as relief for workers from April 2022, but failed to do so. Now the issue needs to be settled first if Hyundai is to take control and launch its own operations.
Paving the way for expansion
The acquisition is a much needed move for Hyundai after its market share recently dipped from 14.95 per cent to 13.62 per cent. It faces a supply chain bottleneck because of limited capacity at the Chennai plant, and an additional unit up north will allow it to roll out more models against Maruti Suzuki and Tata.
