Chennai, Nov 12: Two South Korean automotive component manufacturers, Hwashin Automotive India and Seoyon E-Hwa Summit Automotive India, have announced a combined investment of ₹1,370 crore in Tamil Nadu over the next five years. The announcement comes amid reports that the companies had shifted some of their expansion plans from Tamil Nadu to Andhra Pradesh.
According to a Moneycontrol report published on November 11, both companies submitted Letters of Intent (LoIs) to Tamil Nadu Industries Minister S Keerthana, reaffirming their commitment to the state.
Hwashin and Seoyon Announce ₹1,370 Crore Investment
As part of the latest investment commitments, Hwashin Automotive India plans to invest around ₹850 crore over the next five years.
The investment will focus on research and development, advanced manufacturing technologies, localisation, skill development and new project development.
Meanwhile, Seoyon E-Hwa Summit Automotive India has committed approximately ₹520 crore. The company plans to use the funds for technology upgrades, manufacturing modernisation and new business development.
Together, the two companies’ proposed investments amount to ₹1,370 crore.
Korean Companies Earlier Announced ₹1,614 Crore Investment in Andhra Pradesh
The latest announcement has renewed interest in the earlier reports about South Korean automotive companies choosing Andhra Pradesh over Tamil Nadu for their expansion projects.
An earlier report by The Economic Times stated that three South Korean automotive component manufacturers — Hwashin, Seoyon and Iwamet — had committed a combined investment of ₹1,614 crore in Anantapur, Andhra Pradesh.
According to the report, the investment commitments included:
- Hwashin Automotive: ₹850 crore
- Seoyon Automotive: ₹514 crore
- Iwamet: ₹250 crore
The three proposed projects were expected to create around 1,418 jobs in the state.
The companies had reportedly held discussions with the Tamil Nadu government before signing Memorandums of Understanding (MoUs) with Andhra Pradesh to establish manufacturing facilities in Anantapur.
Nara Lokesh’s South Korea Visit Behind Andhra Pradesh Investments
The reported investments in Andhra Pradesh followed IT, Electronics and HRD Minister Nara Lokesh’s visit to South Korea in July.
During his visit, Lokesh held discussions with manufacturers connected to the Hyundai and Kia automotive supply chains. The Andhra Pradesh Economic Development Board later followed up with the companies to secure investment commitments.
These developments highlighted Andhra Pradesh’s efforts to attract international automobile component manufacturers and strengthen its industrial ecosystem.
Tamil Nadu Disputes Claims of Losing Investments to Andhra Pradesh
Tamil Nadu, however, disputed reports suggesting that it had lost ₹1,614 crore worth of investments to Andhra Pradesh.
A November 4 report by The New Indian Express, quoting a Tamil Nadu Industries Department official, stated that the investments in Anantapur should be understood in the context of automotive supply-chain requirements.
The official reportedly pointed out that the companies also had existing operations near Hyundai and Kia manufacturing facilities.
Andhra Pradesh vs Tamil Nadu: Competition for Korean Investments
The latest ₹1,370 crore investment announcement has added another dimension to the competition between Andhra Pradesh and Tamil Nadu for South Korean manufacturing investments.
While Andhra Pradesh is attracting new automotive projects in Anantapur, Tamil Nadu continues to secure fresh investment commitments from companies operating in its automobile manufacturing ecosystem.
The developments highlight the growing competition between the two neighbouring states to attract global manufacturers, expand automotive supply chains and generate employment opportunities.
