Hyundai will sign the investment agreement with the Indian state of Maharashtra at the World Economic Forum summit in Davos, Switzerland, this week. The announcement was made last week by the Indian Deputy Chief Minister of Maharashtra Devendra Fadnavis on X (formerly Twitter).
It was a great pleasure to meet Mr. Kim Unsoo, MD and CEO of Hyundai Motor India (HMI) along with Executive Director J.W Ryu and HMI senior officials.— Devendra Fadnavis (@Dev_Fadnavis) January 13, 2024
They apprised me on HMI’s ₹𝟕𝟎𝟎𝟎 𝐜𝐫𝐨𝐫𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐢𝐧 𝐓𝐚𝐥𝐞𝐠𝐚𝐨𝐧, 𝐏𝐮𝐧𝐞.
They also sought advice… pic.twitter.com/RrX2zsdW9V
“This is the first investment of Hyundai beyond Tamil Nadu, where they have been investing and doing business successfully for more than 25 years,” Mr Fadnavis stated. “We are absolutely delighted and welcome Hyundai in creating a world-class modern automobile manufacturing facility in Maharashtra!”
News about the new round of investment came after the South Korean carmaker announced in December plans to sell its Russian assets, taking a $219m hit. Operations at its Saint Petersburg plant ceased in March 2022, shortly after Moscow launched an unprovoked full-scale invasion against Ukraine.
In May last year, Hyundai announced plans to open a new $2.4bn electric vehicle assembly plant in Chennai, the capital of the Indian state of Tamil Nadu. Originally, Hyundai inaugurated its first plant near Chennai in Irrungattukottai in December 1996.
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The company’s second plant in Maharashtra comes on the back of strong economic development in the region. Between October 2019 and September 2023, Maharashtra recorded $61.92bn in FDI inflows. Its capital, Mumbai, is India’s financial centre and the country’s largest.
In April, Hyundai said it would invest INR200bn by 2032 as part of its long-term investment plans in the country.