South Korea’s Hyundai Motor on Thursday said it will invest Rs. 200 billion ($2.45 billion) over 10 years in the southern state of Tamil Nadu to increase production and introduce new electric vehicle models.
The carmaker, through its Indian subsidiary Hyundai Motor India, will also set up a battery pack assembly unit with an annual capacity of 178,000 units and install 100 EV charging stations across the state, it said in a statement.
It plans to increase its total production volume in the country to 850,000 per year, the company added.
Hyundai’s move comes a few weeks after the federal government said it would raise taxes on imported cars and motorbikes, including electric vehicles (EVs), as it seeks to boost local manufacturing.
India’s EV industry has grown rapidly, with domestic carmakers Tata Motors and Mahindra & Mahindra as well as global rivals BYD and SAIC’s MG Motor lining up launches.
As of April, Hyundai has a nearly 15 percent market share in India’s passenger vehicle space, only behind Maruti Suzuki.
© Thomson Reuters 2023