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Hyundai and Vinfast commit to major investments in Tamil Nadu's EV sector

EditorRachael Rajan
Published 09/01/2024, 01:08 am
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CHENNAI - In a significant boost to Tamil Nadu's economy and its ambitions to become a USD 1 trillion economy by 2030, several major companies have announced substantial investment commitments. The inaugural day of the Tamil Nadu Global Investors Meet (TNGIM) saw these commitments aimed at transforming Tamil Nadu into a manufacturing hub.

Hyundai (OTC:HYMTF) Motors is set to invest over ₹6,000 crore in the production of internal combustion engine (ICE (NYSE:ICE)) and electric vehicles (EV) in Kancheepuram, and is collaborating with IIT-Madras on a Hydrogen Resource Centre. This initiative demonstrates the company's commitment to both traditional and innovative automobile technologies.

Vinfast plans a ₹16,000 crore investment in the EV industry in Thoothukudi, while Tata Electronics has announced a ₹12,082 crore project in Krishnagiri district. This project is expected to generate numerous jobs and significantly contribute to the local economy.

In addition to these investments, TVS Group disclosed plans for a ₹5,000 crore investment, and JSW Group intends to invest ₹12,000 crore in Thoothukudi and Tirunelveli districts for job creation. First Solar (NASDAQ:FSLR) also committed an ₹8,100 crore investment in Kancheepuram.

Moreover, Pegatron is earmarking ₹1 billion to enhance production capabilities in Chengalpet’s electronics sector, which is anticipated to create 8,000 jobs. These investments align with the state's strategic initiatives to bolster its electronic exports which have already made a significant contribution of over 30% to India's exports.

The influx of capital and the expansion of manufacturing capabilities are poised to accelerate Tamil Nadu's growth trajectory and reinforce its position as a key player in the electronics and EV markets. Chief Minister M K Stalin underlined the state's educational focus and drive for sustainable development to foster inclusive growth and attract more investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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