Hyundai signs deal with Tamil Nadu for Rs. 20,000 cr investment in EV space.

Hyundai Motor India (HMIL) recently signed an agreement with Tamil Nadu to invest around Rs 20,000 crore over 10 years for expanding electric vehicle (EV) production and in associated ecosystem.

HMIL, India’s second largest car manufacturer, will set up a battery pack assembly unit with an annual capacity of 178,000 units. It will install 100 EV charging stations across the state in the next five years, according to the memorandum of understanding (MoU) the two sides signed.

HMIL’s total exports in 2022 stood at 1,81,000 units, and these comprised only internal combustion engines (ICE). The company plans to increase exports to 3,19,000 units in 2023, converting the Sriperumbudur unit near Chennai as a regional export hub of ICE and EVs.

This is the second large investment for EV production that Tamil Nadu is attracting after announcing a new policy in February that offers incentives for manufacturers, customers and charging infrastructure providers. Within days after the policy was announced, SoftBank-backed Ola Electric Mobility lined up its expansion plans at Pochampalli unit in Krishnagiri district with an investment of around Rs 7,614 crore for a four-wheeler electric vehicle manufacturing plant and a 20 giga watt battery manufacturing unit.

“The MoU is part of a strong commitment to create sustainable future technology in Tamil Nadu. Hyundai will continue to work together to achieve our common goal of economic, social and sustainable development. We will be investing around Rs 20,000 crore over a period of 10 years. The long-term investment will help enhance our manufacturing capability and also increase our production volume in Sriperumbadur,” said Unsoo Kim, HMIL's managing director and chief executive officer.

The foundation stone for HMIL’s plant in Sriperumbudur was laid in December 1996 and its second factory there, with an investment of around Rs. 4,000 crore, came up in February 2008. The company had rolled out its 10 million cars from the unit in June 2021. The company has invested Rs. 23,900 crore in Tamil Nadu and provides employment to 15,000 people directly and another 250,000 indirectly, according to Chief Minister M K Stalin.

BS