Andhra Pradesh has secured investment commitments worth ₹1,614 crore from three South Korean automotive component manufacturers supplying Hyundai and Kia, dealing a setback to Tamil Nadu, which had also been courting the companies for fresh investments, as reported in Economic Times.
Hwashin, Seoyon and Iwamet have signed Memorandums of Understanding (MoUs) with the Andhra Pradesh government to establish manufacturing facilities in Anantapur. The three projects are expected to generate 1,418 jobs.
Hwashin has committed ₹850 crore, with an estimated employment potential of 100 jobs. Seoyon will invest ₹514 crore and is expected to create 918 jobs, while Iwamet has committed ₹250 crore, with the potential to generate another 400 jobs.
The investment commitments follow Andhra Pradesh IT, Electronics and HRD Minister Nara Lokesh’s visit to South Korea in July. During the visit, Lokesh held a roundtable with automotive component manufacturers in the Hyundai and Kia supply chain and invited them to invest in Andhra Pradesh. All three companies participated in the interaction.
The state government subsequently followed up through its Economic Development Board, leading to the MoUs.
Speaking to The Economic Times, Lokesh said the companies had committed significant investments following the government’s outreach in South Korea and assured them of continued support.
The development is particularly significant for Tamil Nadu, which had been in discussions with all three companies to secure fresh investments or expansions of their existing operations.
Hwashin and Seoyon already have manufacturing operations in Sriperumbudur and Krishnagiri respectively, while Iwamet had registered an entity in Tamil Nadu. According to a person familiar with the discussions, the Tamil Nadu government’s efforts were aimed at getting the companies to expand their existing investments in the state.
However, the three companies have now committed their latest investments to Andhra Pradesh. Queries sent to Guidance, Tamil Nadu’s investment promotion agency, reportedly remained unanswered at the time of publication.
South Korean companies have a significant presence in Tamil Nadu’s automobile, electronics, renewable energy and manufacturing sectors. In February, the previous DMK government had launched a dedicated Korea Desk through Guidance to attract and facilitate investments from South Korean companies.
The TVK government has also continued its outreach to Korean investors. In June, Industries Minister S. Keerthana visited South Korea and held discussions with MotiveLink. The company subsequently signed an MoU in July for a ₹300 crore investment to manufacture advanced electric vehicle components for global markets.
While Tamil Nadu has an established automotive manufacturing ecosystem and a substantial Korean industrial presence, Andhra Pradesh’s latest success highlights the growing competition between southern states to attract global manufacturers and their supply-chain partners.
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