South Korea’s Hyundai Motor said on Thursday it would invest Rs. The southern state of Tamil Nadu will invest $US200 billion ($2.45 billion) over 10 years to increase production and launch new electric vehicle models.
The carmaker will also set up a battery pack assembly plant with an annual capacity of 178,000 units through its Indian subsidiary Hyundai Motor India and install 100 electric vehicle charging stations across the state, the company said in a statement.
The company added that it plans to increase its total production in the country to 850,000 vehicles per year.
Hyundai’s move comes weeks after the federal government said it would raise taxes on imported cars and motorcycles, including electric vehicles (EVs), to boost local manufacturing.
India’s electric vehicle industry is growing rapidly, with domestic automakers Tata Motors and Mahindra and global rivals BYD and SAIC MG Motor lining up to launch EVs.
As of April, Hyundai’s market share in India’s passenger car segment was close to 15%, second only to Maruti Suzuki.
© Thomson Reuters 2023
