Hyundai to invest ₹20,000 cr in TN to boost EV ecosystem

South Korean auto giant Hyundai Motor’s subsidiary, Hyundai Motor India Ltd (HMIL) has announced its large-scale long-term investment plans in Tamil Nadu. The company aims to make further inroads into electric vehicles and modernisation of vehicle platforms by pumping in ₹20,000 crore in a phased manner over 10 years from 2023 to 2032.

The current announcement comes about two months after Hyundai India signed a term sheet for the potential acquisition of identified assets related to General Motors India’s Talegaon plant in Maharashtra.

The term sheet covered the proposed acquisition of land and buildings, and certain machinery and equipment for manufacturing at GM’s Talegaon plant.

This time, Hyundai has signed a memorandum of understanding (MoU) with the government of Tamil Nadu. Unsoo Kim, MD & CEO, Hyundai Motor India Ltd and V Vishnu, MD & CEO, Guidance Tamil Nadu exchanged the pact in the presence of state chief minister MK Stalin today.

Kim said Hyundai has been one of the largest manufacturers and consistent investors in Tamil Nadu. "This strategic partnership is a testimony to Hyundai’s commitment to boost the socio-economic development and make the country self-reliant."

The Hyundai CEO said as part of the company's long-term vision, it has 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.”

Hyundai Motor India's partnership with Tamil Nadu can be seen in the context of the state's long-term plan to build a sustainable ecosystem for its transition towards electric mobility. Hyundai said it is planning to set up a state-of-the-art battery pack assembly unit, with annual capacity to assemble 1,78,000 units of batteries in Tamil Nadu.

Furthermore, it is eying to install 100 EV charging stations at key locations along major highways in the next five years. These will include 5 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).

Hyundai has also announced its plan to further increase its total production volumes to 8,50,000 units per year. To achieve this, Hyundai has said it'll introduce new electric and ICE vehicles from its factory in Sriperumbudur, Chennai.

Last week, in sync with the government's directions, Hyundai announced the standardisation of three-point seatbelt and seat belt reminders for all seats across its entire model lineup.

Hyundai Motor India had registered domestic sales of 49,701 units and export sales of 8,500 units, with cumulative sales of 58,201 units for April 2023. The domestic sales rose 12.9% to 49,701 as compared to 44,001, while the exports plunged 30.3% to 8,500 as compared to 12,200 in the year-ago period. Overall, Hyundai India recorded a 3.5% growth in monthly sales.