Korean automobile major Hyundai Motor India Limited has announced that it will invest ₹20,000 crore over the next 10 years in Tamil Nadu to modernise vehicle platforms and expand its presence in the electric vehicle space.
An MoU was exchanged between Unsoo Kim, MD and CEO of Hyundai Motor India Limited, and V. Vishnu, MD and CEO of Guidance Tamil Nadu, in the presence of Chief Minister M.K. Stalin, Minister for Industries, Investment Promotion and Commerce T.R.B. Rajaa, Minister for Finance and Human Resource Management Thangam Thennarasu and senior government officials.
Noting that Hyundai was one of the largest manufacturers and consistent investors in Tamil Nadu, Mr. Kim said, “As part of our long-term vision, we have finalised plans to develop and establish Tamil Nadu as a base for Hyundai’s EV manufacturing in India. This will help us to strengthen our portfolio and provide best-in-class features and technologies in our vehicles, which will exceed our customer aspirations.”
During the event, the Chief Minister recalled that in 1996, his father and the then Chief Minister, M. Karunanidhi, laid the foundation for Hyundai’s first unit in the State. The second plant, entailing an investment of ₹4,000 crore, was inaugurated by Karunanidhi in 2008, he noted.
Mr. Thennarasu, who was shifted to the Finance portfolio, said Tamil Nadu had received a lot of investments over the past two years. As a recent example, he cited Cisco’s plan to set up a manufacturing plant in the State.
In his first public meeting after taking charge as Industries Minister, Mr. Rajaa said Hyundai was a household name in India as much as it was in Korea. Hyundai had been a long-time friend of Tamil Nadu, and had now reaffirmed its trust in the State, he said. “This investment shows the mutual understanding built over the years,” he added.
The Tamil Nadu government’s focus on skill development will churn out a talented workforce for the future, he said.
Hyundai aims to be a strategic partner of the Tamil Nadu government in its vision to build a sustainable ecosystem for the State’s transition towards electric mobility. In line with this, Hyundai will set up a state-of-the-art battery pack assembly unit with an annual capacity to assemble 1,78,000 units of batteries. The company will install 100 EV charging stations at key locations on major highways, over a period of five years. This will include five dual ultra-fast charging stations (DC 150 KW + DC 60 KW), 10 single fast charging stations (DC 150 KW) and 85 single fast charging stations (DC 60 KW). The company has also announced a plan to increase total production to 8,50,000 units/year and roll out new electric and ICE vehicles from its factory in Sriperumbudur. Currently, the firm makes 7,75,000 units/year.