A labour hurdle to South Korean auto major Hyundai's expansion in India

Hyundai's aim to boost production by buying General Motors' Talegaon plant runs up against a two-year-old labour dispute

With Tata Motors ramping up production and gaining ground towards becoming the second-largest car manufacturer in India, Hyundai India, which currently holds that position, is considering inorganic expansion to stay the course. Last week, the Korean automaker signed a term sheet with General Motors (GM), which had announced it would exit India in 2017, for a potential acquisition of its Talegaon plant in Maharashtra. However, legal battles initiated by 1,000-odd former employees of the Talegaon plant continue to present a challenge for the acquisition process.

GM told Business Standard that the former employees are not part of the deal with Hyundai.