Two South Korean Auto Parts Firms Commit 1370 Crore Rupees to Tamil Nadu

Two South Korean auto parts makers have committed to invest 1370 crore rupees in Tamil Nadu, despite recent news reports suggesting they might move to Andhra Pradesh.

The Investments

Hwashin Automotive India and Seoyon E-Hwa Summit Automotive India met Tamil Nadu Industries Minister S. Keerthana and gave letters showing their plan to invest. Hwashin will spend 850 crore rupees over the next five years on research, advanced manufacturing, and plant growth. This firm has worked in the state since 2002 at the Sipcot Industrial Park in Irungattukottai, and its CFO Sang Yeol Han signed the proposal. Seoyon E-Hwa Summit Automotive will invest 520 crore rupees for tech updates and business growth, with its managing director Yea Sungho signing the letter. Both companies supply parts to Hyundai Motor India and other major vehicle makers.

Official Reactions

Minister S. Keerthana stated that the investments show global trust in the state's business system and institutions. She added that healthy competition between states helps build India's manufacturing strength. S. Vijayakumar, Additional Chief Secretary, and Deepak Jacob, Managing Director and CEO of Guidance Tamil Nadu, also joined the meeting.

Context

Tamil Nadu competes with other states to draw large industrial investments from global firms. State bodies like Guidance Tamil Nadu work to help companies set up and expand local factories.