New Delhi, Nov 2 (IANS) Andhra Pradesh has secured investment commitments worth Rs 1,614 crore from three firms that supply automotive components to South Korean companies -- including Hyundai and Kia -- providing a significant boost to its manufacturing base, as per reports.
Three firms -- Hwashin, Seoyon and Iwamet -- have signed agreements with the Andhra Pradesh government to establish manufacturing facilities in Anantapur district, they added.
In addition, the proposed projects are expected to generate around 1,400 jobs and strengthen Anantapur's position as an emerging automobile and auto-components production hub.
Among the three companies, one has committed an investment of Rs 850 crore, while another plans to invest Rs 514 crore and the third Rs 250 crore.
Collectively, the projects are expected to create about 1,418 employment opportunities.
The investment commitments follow a visit by Andhra Pradesh Minister for IT, Electronics and Human Resource Development Nara Lokesh to South Korea in July, where he held discussions with companies linked to Hyundai and Kia's global supply chain.
Reports claim that the state's Economic Development Board subsequently maintained engagement with the companies, translating initial discussions into investment proposals.
The development is being viewed as a notable gain for Andhra Pradesh amid increasing competition among southern states to attract global manufacturers and their suppliers.
Tamil Nadu -- which hosts a well-established automobile manufacturing ecosystem and a large number of South Korean companies -- had also been pursuing investments from Korean firms.
According to the auto industry, these companies had held discussions about potential expansion or investment opportunities in Tamil Nadu in recent years.
Moreover, South Korea remains an important source of foreign investment for India's automotive, electronics, renewable energy and advanced manufacturing sectors. Several state governments have intensified outreach efforts to attract Korean companies seeking to expand their presence in India.
Additionally, Hyundai registered a 16.7 per cent increase in domestic wholesales to 62,799 units in October.
"Strong festive demand, coupled with healthy momentum in both domestic and export markets, helped us set this new sales record," said Hyundai Motor India MD and CEO Tarun Garg.
--IANS
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