- Published 2026.11.04 23:30
Three Korean parts makers to invest 16.14 billion rupees in Andhra Pradesh
State dismisses opposition criticism, cites supply chain characteristics not competitiveness
The government of Tamil Nadu has pushed back against the view that large investments by Korean auto parts makers in a neighboring state reflect a decline in its own industrial competitiveness, saying the decisions were driven by supply chain proximity. It explained that parts suppliers naturally cluster near finished vehicle assembly plants to improve logistics efficiency.
On Nov. 4, the Tamil Nadu industries department said the state government issued this position after three Korean parts makers — Hwashin, Seoyon and Iwamet — decided to invest 16.14 billion rupees (about 228.5 billion won) in Anantapur, Andhra Pradesh.
"Parts suppliers locate close to the finished vehicle makers they serve," the state government said, dismissing claims that Tamil Nadu's investment attractiveness has weakened.
The three Korean parts makers had earlier signed a memorandum of understanding (MoU) with the Andhra Pradesh government to set up manufacturing facilities in the Anantapur auto cluster.
By company, Hwashin will invest 8.5 billion rupees (about 120 billion won), while Seoyon and Iwamet will put in 5.14 billion rupees (about 72.8 billion won) and 2.5 billion rupees (about 35.4 billion won), respectively. The projects are expected to create a total of 1,418 new local jobs.
Tamil Nadu had also competed fiercely to attract these companies. The state is home to Chennai, a key production base for Hyundai Motor in India, and has long been considered a traditional hub for Korean parts makers. Hwashin and Seoyon already operate production facilities in Sriperumbudur and Krishnagiri in Tamil Nadu.
When the final investment destination was decided as Andhra Pradesh, the Dravida Munnetra Kazhagam (DMK), the opposition party in Tamil Nadu, reportedly criticized the state government for failing to secure the investment.
In response, a Tamil Nadu industries department official said, "We knew the chances were low because the companies already have bases near the Kia plant, but we did our best to persuade them. This does not mean Tamil Nadu's competitiveness has changed."
Andhra Pradesh, which won the investment, had actively courted the suppliers. In July 2026, Nara Lokesh, the state's information technology minister, visited Korea and held a roundtable with parts makers in the Hyundai Motor and Kia supply chains.
Kia's India vehicle assembly plant is located in Anantapur. If parts makers set up there, they can reduce logistics lead times and inventory holding costs for parts procurement.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
