South Korean Hyundai Motor on Thursday said it would 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 IndiaThe company will also 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.
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)Because it wants to promote local manufacturing.
India’s EV industry has grown rapidly with domestic car makers Tata Motors and the MG Motor line up launch of Mahindra & Mahindra as well as global rivals BYD and SAIC.
As of April, Hyundai has about 15 percent market share in India’s passenger vehicle segment, behind only Maruti Suzuki,
© Thomson Reuters 2023