Hyundai Motor Co. of South Korea announced on May 11th, that it will invest Rs 20,000 crore ($2.45 billion) in Tamil Nadu over a 10-year period to increase production and introduce new electric vehicle models.
The carmaker will also install 100 EV charging stations across the state and set up a battery pack assembly unit of 178,000 units annually, according to a statement from Hyundai Motor India.
The company plans to increase its total production volume in the country to 850,000 units per year.
Reason behind the investment
Hyundai's decision comes just a few weeks after the federal government announced that it would raise taxes on imported cars and motorcycles, including electric vehicles (EVs), in order to boost domestic manufacturing.
India's EV industry is rapidly expanding, with domestic automakers Tata Motors and Mahindra & Mahindra, as well as global rivals BYD and SAIC's MG Motor, planning launches.
Hyundai has a nearly 15% market share in India's passenger vehicle market as of April, trailing only Maruti Suzuki.