Hyundai To Make Tamil Nadu Its EV Hub For India – Compact eSUV Launch In 2026

Hyundai Motor India Ltd. (HMIL) has reaffirmed its commitment to Tamil Nadu, announcing plans to make the state its flagship EV hub for India. The company also revealed a major skill development initiative in partnership with the Government of Tamil Nadu, aimed at preparing the state’s workforce for future mobility technologies. The announcement comes as Hyundai accelerates its electric vehicle strategy in India while simultaneously increasing localization and manufacturing investments in the state.

New Mass Market Hyundai EV Launch This Year

Speaking at the event, HMIL MD & CEO Tarun Garg confirmed that Hyundai will roll out two new models from its Chennai manufacturing facility this year. One of these will be Hyundai’s first dedicated mass-market electric vehicle for India, a product that has already been spotted testing on Indian roads multiple times.

Internally codenamed HE1i, the upcoming electric SUV will be positioned in the sub-4 metre segment and is expected to take on rivals such as Tata Nexon EV, Mahindra XUV 3XO EV and other affordable electric SUVs. The vehicle is expected to feature a high level of localization, including locally sourced battery packs from Exide Energy Solutions, helping Hyundai achieve competitive pricing in the segment.

The new EV is expected to be based on Hyundai-Kia’s E-GMP (K) architecture, which also underpins the Inster EV sold in international markets. Standard and long-range battery pack options are likely to be offered, with capacities expected to be similar to the Inster EV’s 42 kWh and 49 kWh battery packs. Depending on the final specification, range figures could exceed 300 km on a single charge.

Hyundai will manufacture this electric SUV at its Sriperumbudur facility in Tamil Nadu. Apart from serving the domestic market, India will also act as a global production hub for the model, supporting exports to multiple international markets. Hyundai has already established Tamil Nadu’s first battery sub-assembly plant for EV powertrains and is actively localizing key EV components including power electronics.

Hyundai believes these efforts will help strengthen Tamil Nadu’s position as one of India’s leading EV manufacturing hubs. The company has also developed a DC fast-charging network across the state, currently comprising 39 charging stations and 78 charging points. Hyundai plans to further expand this network over the next two to three years as it broadens its EV portfolio in India.

Localization To Reach 90%

Hyundai has outlined ambitious localization plans for both EV and ICE vehicles. The company aims to increase localization levels from the current 82% to 90% over the next five to six years. In addition, Hyundai plans to increase sourcing from Tamil Nadu-based suppliers by around Rs 4,000 crore during the same period. The move is expected to create approximately 2,000 additional jobs while strengthening the local automotive supply chain and reducing import dependence.

Rs 26,000 Crore Investment Commitment

HMIL reiterated its commitment to invest over Rs 26,000 crore in Tamil Nadu between 2023 and 2032. This forms part of the company’s broader Rs 45,000 crore investment plan announced earlier. The investment will support manufacturing expansion, localization initiatives, EV development, innovation, sustainability programs and employment generation. Hyundai also highlighted that vehicles manufactured in Tamil Nadu continue to serve global markets, with over 3.9 million Hyundai vehicles exported from the state to more than 150 countries so far.

Skill Development Partnership With Tamil Nadu

Alongside its EV plans, Hyundai announced a strategic skill development collaboration with the Government of Tamil Nadu. The initiative is expected to commence operations in December 2027 and will focus on enhancing the employability of Tamil Nadu’s youth for both domestic and international opportunities.

Training programs will cover next-generation automotive technologies including electric vehicles, hydrogen mobility, robotics, automation, artificial intelligence-enabled manufacturing and smart factory systems. Tamil Nadu government will support the initiative through partnerships with ITIs, polytechnics, engineering colleges and other skill development institutions across the state. The program will also include workplace communication and language training to improve employment opportunities globally.