An MoU regarding the investment will be signed at Davos 2024 soon.
Hyundai Motor India will invest Rs 7,000 crore at its upcoming Talegaon facility in Maharashtra. This plant, which previously belonged to General Motors, will be Hyundai’s second in India after the one in Tamil Nadu.
The news of the investment was recently announced on X (formerly Twitter) by Maharashtra’s Deputy Chief Minister Devendra Fadnavis after a discussion with Hyundai India MD and CEO, Unsoo Kim, and other officials from the brand. The post further said that the delegation from Hyundai India provided insights into the investment in Talegaon, along with seeking advice and adjustment on the project.
An announcement along with the signing of the MoU regarding this investment is expected to take place at Davos 2024 in the coming days.
Protesting Talegaon plant workers soften their stand
The Bombay High Court recently dismissed the General Motors Employees Union’s petitions against the closure of the Talegaon plant. And now, our sister publication Autocar Professional learns that the Talegaon plant workers are unlikely to challenge the same in the Supreme Court, and instead would be looking to engage with the company yet again for a resolution.
The workers’ union has softened its stand to compulsorily hire the 900 employees, with the Maharashtra government stepping in to offer compensation of Rs 25 lakh to each impacted worker. “The workers are more likely to reach a mutual settlement,” sources indicated.
The workers union had filed two writ petitions in the Bombay High Court: firstly, to challenge the Pune Industrial Court’s decision to close GM’s Talegaon facility and secondly, the Maharashtra government’s decision to grant Hyundai Motors the NOC to go ahead with the transfer.
When contacted, the General Motors Employees Union’s president, Sandeep Bhegade, told Autocar Professional that the union is currently in talks with the management to reach a swift resolution to the issue. Workers are hoping that Hyundai will absorb them as the state government in their previous meeting had stated that it will be offering extra incentives to Hyundai in case the South Korean carmaker decides to absorb the Talegaon plant workers.
Recently, Deputy Chief Minister Ajit Pawar had said, “The government intends to compensate each worker with Rs 25 lakh in cash. Hyundai, which aims to take over the site, has also promised to hire its former GM employees based on specific criteria. Our government is committed to ensuring justice for the workers affected by this transition.”
Once ready, Hyundai intends to manufacture the Venue compact SUV at the Talegaon plant, and may use it as a base for made-in-India vehicle exports. The brand recently launched the heavily updated Creta SUV in India which will also see exports to some international markets.
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