Tamil Nadu attracts over Rs 36,000 crore investment from Auto Inc at investors meet

Tamil Nadu attracts over Rs 36,000 crore investment from Auto Inc at investors meet

Tamil Nadu has now more reasons to be considered one of the most sought-after automotive hubs in the country. It has attracted over Rs 36,000 crore worth of new investments by several automakers and suppliers at the Tamil Nadu Global Investors Meet 2024.

Starting with electric vehicle start-up Terra Motors with a proposed investment of Rs 50 crore towards setting up an electric vehicle charging ecosystem.

Automotive component and defence supplier Bharat Forge has signed a non-binding MoU with the Tamil Nadu state government to invest up to Rs 1,000 crore over 5 years to expand its manufacturing footprint in Tamil Nadu.

Ashok Leyland, the flagship company of the Hinduja Group, will invest Rs 1,200 crore over 3-5 years, towards strategic initiatives to drive innovation, technological advancements, and overall business expansion.

In the two-wheeler space, Royal Enfield proposed to invest Rs 3,000 crore over 8-years towards greenfield and brownfield projects, which will be primarily allocated for the development of new products, electric vehicle offerings (product development and capacity expansion), and potential capacity enhancements for petrol scooters as needed.

French multinational Saint-Gobain will invest over Rs 3,400 crore across the different businesses including – glasswool, gypsum plasterboard, plaster, acoustic ceiling, float glass, solar glass, adhesives, sealants, mortars, and ceramics. This will translate to over Rs 8,000 crore invested by the company in the country.

On the other hand, TVS Motor Co has earmarked about Rs 5,000 crore for automobile, IT and realty sectors.

One of the biggest surprises came from Hyundai Motor Company. The Korean auto major announced a fresh investmentof Rs 6,180 crore, which includes Rs 180 croretowards a dedicated ‘Hydrogen Valley Innovation Hub,’ in association with IIT- Madras in the state. This was in addition toRs 20,000 crore investment announcedlast year.

Vietnamese automaker VinFast announced its India entry with a robust$2 billion (Rs 16,662 crore) investment, with an intended commitment of $500 million (Rs 4,165 crore) for the first phase of the Project, spanning 5-years from the commencement date. This will see the newest EV brand to set upits base in Tamil Nadu, as it aims to take advantage of both domestic as well as export opportunities.

Interestingly, Ola Electric, which is set to start manufacturing lithium-ion cells at the country’s first gigawatt factory in Tamil Nadu is also expected to make new investments in the state.

CompanyInvestment (in Rs crore)Terra Motors50TAFE500Bharat Forge1,000Ashok Leyland1,200Royal Enfield3,000Saint-Gobain3,400TVS Group5,000Hyundai Motor India6,180VinFast16,662Total36,992