Hyundai Motor of South Korea will invest $2.45 billion in Tamil Nadu over a 10-year period. This investment will be used to boost production and introduce new electric vehicle (EV) models.

In addition, the automaker will establish a battery pack assembly unit with an annual capacity of 1,78,000 units and will install 100 EV charging stations across the state. Hyundai Motor intends to increase its total annual production volume in India to 8,50,000 units.

The news comes a day after media reports suggested that Hyundai Motor India's next phase of investment will cost around Rs 15,000 crore. These investments, ranging from Rs 15,000 crore to Rs 20,000 crore, will be made over the next 7-10 years.

This investment comes just weeks after the government announced that it would raise taxes on imported cars and motorcycles, including EVs, in order to boost domestic manufacturing.

Hyundai has two more plants in the state, in Irungattukottai and Sriperumbudur. The Sriperumbudur plant, the second largest outside of South Korea, can produce 7,40,000 cars per year. In India, the automaker currently sells two electric vehicles, the IONIQ 5 and the Kona Electric.

Hyundai Motor is only second to Maruti Suzuki in terms of passenger vehicle sales. Hyundai controls approximately 15% of the market, with the Hyundai Creta and Hyundai Venue being the best-selling models in May so far.

Hyundai, on the other hand, is not the only automaker to invest in establishing a manufacturing facility in Tamil Nadu. Mitsubishi Electric's India subsidiary intends to invest $231.2 million in establishing a manufacturing facility in the southern state. Mitsubishi Electric India intends to hire 2,004 workers for the project.