Hyundai Motor Co announced Monday that the Korean automaker has agreed to a potential acquisition of General Motors' (GM) plant in India.
A final deal is subject to meeting certain conditions including obtaining "regulatory approvals from relevant government authorities and all stakeholders related to the acquisition", Hyundai said in a statement.
GM stopped selling cars in India in 2017. However, a complete exit from the market has been hindered by complications, including legal battles with workers and failure to find a buyer for the plant which is in the western Indian state of Maharashtra.
In 2019, GM agreed to sell the plant to China's Great Wall Motor but talks collapsed after the companies failed to obtain regulatory approvals.
This acquisition will give Hyundai a second plant in India allowing the carmaker to boost production capacity at a time when it plans to launch six electric vehicles in the country by 2028.
Shares of GM are down 1.40% in afternoon trading on Monday.
By Michael Elkins | Michael.Elkins@streetinsider.com