CHENNAI: Two South Korean automotive component suppliers to Hyundai and Kia have conveyed plans to invest a combined Rs 1,370 crore in Tamil Nadu over the next five years, sources in the state industries department said on Wednesday. The proposal comes just days after a political slugfest over alleged loss of investments to Andhra Pradesh.
Hitting out at critics who had questioned the state’s ability to retain major automotive investments, sources said the government had received letters of intent (LoIs) from Hwashin and Seoyon, and the memorandums of understanding (MoUs) are expected to be signed shortly.
According to the sources, both companies communicated their investment intentions in letters dated November 11, reaffirming their commitment to expanding operations in TN.
Hwashin, which operates a manufacturing facility at SIPCOT Irungattukottai, has proposed to invest around Rs 850 crore. The investment will support research and development, advanced manufacturing technologies, localisation, capacity expansion and new business opportunities.
Seoyon E-Hwa Summit Automotive India Private Limited has outlined an investment plan of `520 crore, focusing on technological upgrades, modernisation of manufacturing facilities and expansion into new business areas.
Earlier this month, reports indicated that three South Korean automotive component manufacturers – Hwashin, Seoyon and Iwamet – had chosen Andhra Pradesh for a combined investment of Rs 1,614 crore, leading the opposition to question Tamil Nadu’s ability to retain its position as India’s leading automobile manufacturing hub.
“Investors make their decisions based on the strength of an ecosystem, the quality of its institutions and the confidence they have in its future. The proposed investments of Rs 1,370 crore by Hwashin and Seoyon are a strong reaffirmation of the trust that global manufacturers continue to place in Tamil Nadu,” Industries Minister S Keerthana said.
“Under the leadership of Chief Minister C Joseph Vijay, we are committed to building an industrial ecosystem that not only attracts new investments, but also enables existing industries to grow, innovate and create more employment opportunities,” she added.
TN’s automotive ecosystem is anchored by a dense network of vehicle manufacturers and component suppliers across Chennai, Sriperumbudur, Hosur and Coimbatore. However, the competition is no longer confined to attracting new investors. Rival states are increasingly seeking to establish a presence in Chennai to reach companies that have traditionally looked to TN when expanding their manufacturing operations.
CM opens EV bike experience centre
Chennai: CM C Joseph Vijay virtually inaugurated the three-storey flagship experience centre of Chennai-based electric motorcycle maker Raptee.HV, at Perungudi on Old Mahabalipuram Road on Wednesday. The inauguration of the experience centre comes after the Tamil Nadu Industrial Development Corporation (Tidco) invested `25 crore in the start-up under the state’s new start-up investment policy earlier this year. The experience centre is designed to offer customers a closer look at the company’s T30 electric motorcycle.