South Korea’s Hyundai Motor Group has announced plans to invest $2.4bn (Won3.17trn) to open a new electric vehicle (EV) assembly plant in the Indian city of Chennai in the state of Tamil Nadu. The new plant will be able to manufacture 75,000 EV units per annum.
The news comes on the back of a strong run for the state of Tamil Nadu when it comes to attracting foreign direct investment (FDI). It recently announced investments from Malaysia’s state-owned oil and gas company Petronas, Switzerland-based woodwork manufacturer XyloNetics and US-based manufacturer of construction equipment Caterpillar. Tamil Nadu has long been recognised as a hub for automotive manufacturing in India. The region is among the top ten automotive locations in the world with an annual installed capacity of 1.71 million car units. Every three minutes it makes a car, every two minutes a truck and every six seconds a motorcycle.
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India was the most popular FDI destination for job creation in 2022, benefitting from a decline in inbound investment in China.
