Chennai: South Korea’s Hyundai Motor Co said on Thursday it would invest 200 billion won ($2.45 billion) over 10 years in the southern state of Tamil Nadu to ramp up production and introduce new electric vehicle models.
The carmaker, through its Indian subsidiary Hyundai Motor India, will set up a battery pack assembly unit with an annual capacity of 178,000 units and set up 100 EV charging stations across the state, it said in a statement.
The company said it plans to increase its total production volume in the country to 850,000 per year.
Hyundai’s move comes 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 the launch of domestic carmakers Tata Motors and Mahindra & Mahindra as well as MG Motor from global rivals BYD and SAIC.
As of April, Hyundai has about 15% market share in India’s passenger vehicle segment, behind only Maruti Suzuki.
($1 = 81.7800 Indian Rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Janane Venkataraman)
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