Chennai: After facing criticism over the loss of auto component supplier investments to Andhra Pradesh, the Tamil Nadu government has secured investment commitments worth Rs 1,370 crore from two South Korean automotive component manufacturers over the next five years.
Hwashin Automotive India Private Limited and Seoyon E-Hwa Summit Automotive India Private Limited, which supply components to Hyundai and Kia, had been considering shifting their proposed manufacturing investments from Tamil Nadu to Andhra Pradesh. However, both companies formally communicated on Wednesday their intention to continue expanding their operations in Tamil Nadu, reaffirming their confidence in the state’s industrial ecosystem.
Industries and Investment Promotion Minister S. Keerthana said the investment commitments reflected the strength of Tamil Nadu’s industrial environment.
“Investors make their decisions based on the strength of an ecosystem, the quality of its institutions and the confidence they have in its future. The proposed investments of Rs 1,370 crore by Hwashin and Seoyon are a strong reaffirmation of the trust that global manufacturers continue to place in Tamil Nadu,” she said in a statement.
Hwashin, which already operates a manufacturing facility at SIPCOT Irungattukottai, plans to invest around Rs 850 crore over the next five years. The investment will support research and development, advanced manufacturing technologies, localisation, capacity expansion and the pursuit of new business opportunities.
Seoyon E-Hwa Summit Automotive India Private Limited has committed Rs 520 crore between 2027 and 2031. The investment will be used for technological advancement, modernisation of manufacturing facilities and the development of new business lines.
Keerthana said the state was committed to building an industrial ecosystem that not only attracts fresh investments but also enables existing industries to expand, innovate and generate more employment opportunities.
Responding to the competition among states to attract investments, the minister said it was welcome as it ultimately strengthened India’s manufacturing capabilities.
“Our focus remains on delivering results, creating opportunities and ensuring that Tamil Nadu continues to be among India’s most preferred destinations for manufacturing and investment. This should also send a strong signal to people who have been doubting institutions like Guidance TN for petty political gains,” she said.
The statement comes amid criticism from the Opposition over Tamil Nadu’s efforts to retain industrial investments. DMK president M.K. Stalin had accused the TVK government of putting the state in reverse gear, warning that people should brace for tough times as “Tamil Nadu is doomed under the TVK government”.
Industries Department officials said the proposed investments reflected international manufacturers’ continued confidence in Tamil Nadu’s skilled workforce, established automotive and engineering base, industrial infrastructure and investor-friendly policies.
(Edited by Anupama Yadav)