South Korean automobile giant, Hyundai, announced on Thursday that it will invest Rs 20,000 crore in Tamil Nadu over a period of 10 years. The car manufacturer signed a Memorandum of Understanding (MoU) with the state government, revealing that the investment will commence with an electric vehicle (EV) battery pack assembly unit with a capacity of 178,000 units annually. The assembly unit is expected to commence operations within the next 12 months and will create about 500 job opportunities.
Hyundai’s India MD & CEO, Unsoo Kim, expressed his enthusiasm for the investment, saying “The investment shows our commitment to the India market and the state of Tamil Nadu. We will create employment and support the EV industry in India as well as the hydrogen ecosystem when it comes in the future.”
This move marks an extension of Hyundai’s longstanding relationship with Tamil Nadu, where the company has been operating for more than two decades. Over this period, Hyundai has already invested around Rs 28,000 crore in the state’s automobile manufacturing facilities. With this latest investment, Hyundai aims to further strengthen its position in the Indian market, which is expected to be one of the largest markets for electric vehicles in the world.
The new assembly unit will play a crucial role in Hyundai’s plans to expand its electric vehicle production in India, which is a part of the company’s overall strategy to develop sustainable mobility solutions. The expansion plan will also include the production of other EV components in addition to batteries. The EV battery pack assembly unit is expected to support the production of electric vehicles at Hyundai’s manufacturing plant in Sriperumbudur, near Chennai.
This investment comes at a time when the Indian government is aggressively promoting the adoption of electric vehicles in the country. The government has set an ambitious target of achieving 30% electric mobility in the country by 2030, which has led to several automakers announcing investments in EV production facilities across India.
Hyundai is one of the many automobile companies that have announced plans to expand their EV production capacity in India. The company had recently launched its Kona Electric SUV in the country, which has been well received by Indian customers. The Kona Electric SUV is equipped with a 39.2 kWh battery pack, which offers a range of up to 452 kilometres on a single charge.
The launch of the Kona Electric SUV was a major milestone for Hyundai’s EV plans in India, and the investment in the new assembly unit further reinforces the company’s commitment to sustainable mobility in the country. The company is also expected to launch more electric vehicles in the Indian market in the coming years.
The investment by Hyundai is also expected to create several indirect employment opportunities in Tamil Nadu, particularly in the supply chain and service industries. The development is expected to contribute to the economic growth of the state and boost the manufacturing sector.
The new EV battery pack assembly unit will not only help Hyundai to ramp up its EV production but also contribute to the development of a robust EV ecosystem in India. The government’s push towards electric mobility, combined with the investments made by automakers like Hyundai, is expected to accelerate the adoption of electric vehicles in India, which is a significant step towards achieving sustainable mobility in the country.
In conclusion, Hyundai’s decision to invest Rs 20,000 crore in Tamil Nadu is a significant step towards the development of the EV industry in India. The investment will not only create job opportunities but also support the growth of the manufacturing sector in the state. With the government’s push towards electric mobility, the investment is expected to contribute towards achieving sustainable mobility in India, making it an important milestone in the country’s transition towards a greener future.
