South Korean Auto Components Firms to Invest ₹1,370 Crore in Tamil Nadu

Two South Korean automotive component manufacturers have announced a combined investment of ₹1,370 crore in Tamil Nadu over the next five years, according to a statement released by the Tamil Nadu Industries department.

The companies, Hwashin Automotive India Private Ltd and Seoyon E-Hwa Summit Automotive India Private Ltd, formally communicated their intention to continue expanding their operations in the State. The official communication from both firms on Wednesday addressed recent media reports suggesting they might shift their proposed manufacturing investments from Tamil Nadu to Andhra Pradesh, reaffirming their long-term confidence in the State’s industrial ecosystem.

Hwashin, which currently operates at SIPCOT Irungattukottai, plans to invest approximately ₹850 crore over the next five years. According to the State's statement, this proposed investment will support research and development, advanced manufacturing technologies, localisation, capacity expansion, and new business opportunities.

Meanwhile, Seoyon E-Hwa Summit Automotive India Private Limited has outlined an investment plan of ₹520 crore to be deployed between 2027 and 2031. This capital allocation will focus on technological advancement, the modernisation of manufacturing facilities, and the development of new business opportunities.

Industries Minister S Keerthana stated that the proposed investments from both companies serve as a strong reaffirmation of the trust global manufacturers continue to place in Tamil Nadu.

Yea Sungho, Managing Director of Seoyon E-Hwa Summit Automotive India, noted in a letter to the State government regarding the investment that the company's Tamil Nadu operations will continue to play a critical role in supporting the evolving requirements of Hyundai Motor Ltd, while also enabling the firm to strengthen partnerships with existing and emerging original equipment manufacturer (OEM) customers. Both Hwashin and Seoyon serve as key suppliers to major automakers including Hyundai and Kia.

"This commitment of ₹1,370 crore by key automotive component suppliers demonstrates the resilience and attractiveness of Tamil Nadu's industrial ecosystem. For the broader business and manufacturing sector, maintaining supply chain stability close to major OEMs like Hyundai and Kia is crucial. When global suppliers reaffirm their long-term manufacturing and R&D plans despite conflicting market reports, it signals deep-rooted confidence in regional infrastructure, skilled labour, and state-level policy support." — Dr. Shishir Gupta, Founder & CEO, StartupLanes