Hyundai Motor Co. announced it will invest $2.45 billion in the Indian state of Tamil Nadu over the next decade to boost the production of its electric vehicles through its local subsidiary, Hyundai Motor India, according to a statement on the company website.
South Korea’s largest carmaker also said it planned to build a state-of-the-art battery assembly factory with an annual capacity of 178,000 units and install 100 EV charging stations across Tamil Nadu in the next five years.
“The long-term investment will help enhance our manufacturing capability and also increase the production volume at our plant in Sriperumbudur, enabling us to make the best electric and ICE (internal combustion engine) vehicles in Tamil Nadu for the rest of the world,” Hyundai Motor India Managing Director Unsoo Kim said in a press conference.
Also present during the event was Chief Minister of Tamil Nadu Muthuvel Karunanidhi Stalin and Vishnu Venugopalan, Managing Director and CEO of Guidance Tamil Nadu, the state’s main investment promotion agency.
Tamil Nadu, a global hub for automobile manufacturing, produces millions of vehicles every year and is India’s leading investment destination for EV makers.
According to Indian Finance Minister Palanivel Thiaga Rajan, 46% of two-wheeler EVs sold in the country last year were manufactured in Tamil Nadu. The state has its own electric vehicle policy, which provides EV manufacturers and charging stations with various incentives, including tax holidays and capital subsidies.
Aside from Hyundai Motor India, other EV manufacturers in Tamil Nadu include Nissan, Renault and local players Tata Motors and Mahindra & Mahindra.