Hyundai Buys 26% Stake in Fourth Partner’s TN Wind Farm

Hyundai Motor India has invested ₹16.58 crore as the first tranche to acquire 23,62,638 equity shares in Fourth Partner FPEL TN Wind Farm Private Limited, a special purpose vehicle (SPV) of Fourth Partner Energy. The shares were allotted via private placement on June 6, 2025. Following the infusion, Hyundai now holds a 26.13% stake in the wind power firm.

These projects will operate under the Group Captive Model to supply renewable energy to Hyundai Motors. Hyundai Motors can subscribe to a minimum of 26% equity in the SPV by investing approximately ₹38,05,07,400 in one or more tranches. The power producer can retain the rights to establish and operate the power plants, while Hyundai Motors can source solar and wind power from the SPV for a term of 25 years from the start of commercial operations.

The investment is part of a broader agreement signed in November 2024, under which Hyundai committed ₹38.05 crore in one or more tranches to acquire at least a 26% stake in FPEL TN Wind Farm. Fourth Partner Energy, through its SPV, has also signed power purchase agreements (PPAs) with Hyundai Motor India for both wind and solar supply. The Tamil Nadu-based SPV plans to develop a 75 MW solar plant and a 42.9 MW wind project, totaling 118 MW of renewable energy capacity.

Automotive Segment Expand RE Sourcing

Automotive companies are increasingly looking to meet their energy needs through captive or group captive renewable energy projects. For instance, companies like Maruti Suzuki India Limited (MSIL) have expanded their solar capacity by 30MWp with two new solar projects across Haryana.

The Company commissioned a 20MWp solar power project at its new facility in Kharkhoda, Haryana, and added another 10MWp solar capacity to its Manesar facility. With these additions, MSIL’s total solar capacity across its locations has enhanced from 49MWp to 79MWp in the last one year. Besides, the Company is increasing the share of green power sourced from State Electricity Boards for its consumption. These initiatives in solar power and green power will help the company meaningfully shift its dependence toward renewable energy.