China tensions open door for Hyundai to buy GM's India plant

Chinese rival Great Wall Motors had sought factory as foothold in growing market

Employees work inside the General Motors plant in Maharashtra, India, in this 2012 photo. The U.S. automaker has been producing cars for export at the facility in recent years. © Reuters

RYOSUKE HANADA, Nikkei staff writer

March 30, 2023 00:57 JST

NEW DELHI -- General Motors is poised to sell its Indian plant to Hyundai Motor, after a chill in relations between New Delhi and Beijing derailed a deal with a Chinese automaker first announced over three years ago.

Hyundai Motor India said on March 13 that it signed a term sheet to potentially acquire a GM plant in Maharashtra, pending regulatory approvals. The South Korean automaker is second only to Maruti Suzuki in India's passenger car market and is also expected to use the factory as a production hub for exports.