Two South Korean auto firms to invest ₹1,370 crore in Tamil Nadu
The investment comes as the state government refutes reports that manufacturers were shifting projects to Andhra Pradesh.
Two South Korean automotive component manufacturers, Hwashin Automotive India Private Limited and Seoyon E-Hwa Summit Automotive India Private Limited, plan to invest a combined ₹1,370 crore in Tamil Nadu over the next five years, according to Business Standard.
The announcement on Wednesday follows media reports and social media claims suggesting that these suppliers to Hyundai and Kia were moving their manufacturing investments to Andhra Pradesh. The state government described the claims of project diversion as completely false.
Hwashin Automotive India, which operates at SIPCOT Irungattukottai, intends to spend approximately ₹850 crore during the five-year period. This capital is intended for capacity growth, localisation, new projects, skill enhancement, and R&D and advanced manufacturing technologies.
Seoyon E-Hwa Summit Automotive India Private Limited has proposed an investment of ₹520 crore between 2027 and 2031. The company will use the funds for modernisation, technological upgrades, and new business development.
Industries Minister S Keerthana stated that the proposed investments reaffirm the trust global manufacturers place in the state. She added that the government welcomes competition between states as it strengthens India's manufacturing capabilities.
Seoyon E-Hwa Summit Automotive India Managing Director Yea Sungho said the company's Tamil Nadu operations will continue to support the requirements of Hyundai Motor Ltd while strengthening partnerships with existing and emerging OEM customers.