BENGALURU, Aug 16 (Reuters) – Hyundai Motor Co’s (005380.KS) Indian unit will purchase automaker General Motors’ (GM.N) Talegaon plant within the western state of Maharashtra, a transfer that can enable the U.S. automaker to exit the nation as nicely improve Hyundai’s annual manufacturing.

Through its Sriperumbudur facility outdoors Chennai metropolis and now the Talegaon plant, Hyundai goals to extend its cumulative manufacturing capability to 1 million models per 12 months, it stated on Wednesday. The firm had a manufacturing capability of 820,000 models within the first half of this 12 months.

The South Korean agency stated it intends to improve the prevailing infrastructure on the Talegaon unit and begin manufacturing in 2025. The plant presently has an annual manufacturing capability of 130,000 models.

Hyundai, India’s second-biggest carmaker by gross sales, didn’t point out a deal worth.

This deal will enable the U.S. automaker to exit India. GM stopped promoting vehicles within the nation in 2017 after years of dwindling gross sales however its full exit from the market has been marred by problems, together with authorized tussles with employees and failure to discover a purchaser for the plant.

In 2019, GM agreed to promote the plant to China’s Great Wall Motor (601633.SS) however talks collapsed after the businesses did not acquire regulatory approvals amid New Delhi’s scrutiny of Chinese investments.

Last week, Hyundai said it plans to launch extra electrical autos (EVs) underneath the Hyundai and Kia (000270.KS) manufacturers in India, in an indication that it’s betting large on the world’s third-largest auto market.

It plans to invest $2.45 billion to beef up EV manufacturing within the nation and is bullish on the native urge for food for EVs.

Reporting by Ashish Chandra in Bengaluru; Editing by Sonia Cheema

Our Standards: The Thomson Reuters Trust Principles.