Hyundai Motor to invest $2.45 bn in Tamil Nadu over 10 yrs; to install 100 EV charging stations

South Korean automaker Hyundai Motor will invest $2.45 billion in Tamil Nadu over a period of 10 years. This investment is aimed at increasing production and introducing new electric vehicle (EV) models.

The carmaker will also set up a battery pack assembly unit having an annual capacity of 1,78,000 units and install 100 EV charging stations across the state, news agency Reuters reported citing a company statement. Hyundai Motor plans to increase its total production volume in India to 8, 50,000 per year.

The development comes a day after media reports suggesting that Hyundai Motor India is expected to pump in around Rs 15,000 crore in its next phase of investment. These investments worth Rs 15,000 crore to Rs 20,000 crore would be spread across the next 7-10 years.

This investment also comes weeks after the government said it would hike taxes on imported cars and motorbikes including EVs as it looks to boost local manufacturing.

Hyundai has two more manufacturing plants in the state—Irungattukottai and Sriperumbudur. The Sriperumbudur plant is capable of producing 7,40,000 cars per year and is the second largest facility outside South Korea. The automaker currently has two electric vehicles—IONIQ 5 and Kona Electric—selling in India.

India’s electronic vehicle market has grown rapidly as domestic carmakers such as Tata Motors and Mahindra (M&M) as well as global manufacturers such as BYD and MG Motor are planning to launch more products in the world’s most populous country.

In terms of passenger vehicle sales, Hyundai Motor is only behind Maruti Suzuki. Hyundai commands around 15 per cent of the market space, with Hyundai Creta and Hyundai Venue being the highest selling models in May so far.

Hyundai, however, is not the only automaker to invest to set up a manufacturing facility in Tamil Nadu. The India subsidiary of Mitsubishi Electric plans to invest in $231.2 million to set up a manufacturing facility in the southern state. Mitsubishi Electric India plans to employ 2,004 people for the project.

(With Reuters inputs)

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