Hyundai to invest $2.5bn in India, scale up production at its largest manufacturing hub outside Korea

Over a period of 10 years (2023-32), South Korean automaker Hyundai will be investing USD2.5 billion (INR 20,000 crore) in India. This investment isaimed at scaling up the firm's existing manufacturing operations of electric vehicles and internal combustion engine vehicles, developing an Electric Vehicle (EV) ecosystem, setting up EV charging stations and establishing an EV battery assembly unit.

Unsoo Kim, MD andCEOof Hyundai Motor India Limited (HMIL) has signed a Memorandum of Understanding with the Tamil Nadu government in this regard.The MoU was exchanged in the presence of top officials from HMIL and the Tamil Nadu government led by Chief Minister MK Stalin.

"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," said Unsoo Kim. He added that this investment would be utilised to set up a battery pack assembly unit with the capacity to assemble 1,78,000 units per year. In addition to this, the firm would install 100 EV charging stations at key locations on major highways over a period of five years.

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Tamil Nadu Chief Minister MK Stalin recalled how his father and then Chief Minister MKarunanidhi had laid the foundation stone for the first Hyundai factory in Chennai, in the year 1996. Tracing the growth of Hyundai, he said that the South Korean firm is now the second-largest carmaker in India and the largest exporter of cars from the country. He also added that in terms of the manufacture of automobiles and automobile components, Tamil Nadu has been the leading state in India. Coinciding with its 25th-year milestone in India, Hyundai also rolled out its millionth car made in the country, in the year 2021.

Speaking to WION, Hyundai's AVP, of Corporate Affairs, Puneet Anand said that the firm will be expanding its automobile manufacturing capacity in the Chennai factory.

"Outside Korea, India is the single largest manufacturing hub of Hyundai, and we will be scaling up the manufacturing capacity from the current775,000(7.75 lakh) cars per annum to850,000(8.5 lakh). We export made-in-India cars to 88 countries," he added.

According to him, the latest investment by Hyundai is focussed on sustainable mobility and assembling EV batteries locally and it'll eventually bring down the cost of electric vehicles in the country. The firm also announced that it will also be launching a range of electric vehicles across price segments in India.

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