In an effort to stimulate domestic production, the federal government announced a few weeks prior that import duties on automobiles and motorcycles, including electric vehicles (EVs), would be increased. With home automakers Tata Motors and Mahindra & Mahindra, as well as international rivals BYD and SAIC’s MG Motor, planning launches, India’s EV business has expanded quickly.
The $2.45 billion investment in Tamil Nadu will be made over ten years by the South Korean automaker Hyundai Motor. New electric vehicle (EV) models will be introduced along with increased production thanks to this investment.
According to a statement made by the automaker, which was cited by news agency Reuters, the business would also set up a battery pack assembly facility with a 1,78,000-unit annual capacity and deploy 100 EV charging stations throughout the state. To reach a total production volume of 8,50,000 units annually in India, Hyundai Motor wants to enhance production.
The news comes a day after media sources claimed Hyundai Motor India would invest over Rs 15,000 crore in its upcoming phase of investment. The next 7 to 10 years will be used to spread out these initiatives, which will cost between Rs 15,000 and Rs 20,000 crore.
This investment also comes just after the government announced it would increase import duties on vehicles, including electric vehicles (EVs), in an effort to support domestic manufacture.
Irungattukottai and Sriperumbudur are two other factories for Hyundai in the region. The second-largest factory outside of South Korea, the Sriperumbudur plant, has a capacity of 7,40,000 automobiles per year. In India, the IONIQ 5 and Kona Electric are the two electric vehicles currently offered by the manufacturer.
Indian automakers like Tata Motors and Mahindra (M&M) and international producers like BYD and MG Motor are preparing to introduce more products in the most populous nation in the world, which has led to a rapid expansion of the country’s electronic vehicle sector.
Hyundai Motor trails Maruti Suzuki in terms of passenger car sales. The Hyundai Creta and Hyundai Venue are the two models that have sold the most units so far in May, and Hyundai controls about 15% of the market.
But Hyundai isn’t the only automaker to make a financial commitment to establish a manufacturing unit in Tamil Nadu. The Mitsubishi Electric India subsidiary plans to invest $231.2 million to establish a manufacturing facility in the southern state. 2 004 workers will be employed by Mitsubishi Electric India for the project.
