South Korean Auto Giants Ink Major Solar Deal to Power Indian Plants

CHENNAI, India – March 06, 2026 – In a significant move to advance industrial decarbonization in India, South Korean automotive giants Daeseung Autoparts and Ilgahng Automotive have signed long-term solar Power Purchase Agreements (PPAs) with Sunsure Energy. The deal, totaling 8 megawatts-peak (MWp), will supply clean energy to the companies' manufacturing facilities in Kanchipuram, Tamil Nadu, underscoring a growing trend of global supply chains embedding sustainability into their Indian operations.

The agreements represent a crucial step in the green transition of India's energy-intensive automotive sector. By leveraging renewable energy, these companies are not only aligning with global climate goals but also building resilience against volatile energy markets.

The Green Factory Floor in Tamil Nadu

Under the terms of the agreements, Sunsure Energy will supply a combined total of approximately 12.7 million units of solar power annually from its 75 MWp solar plant in Ilayangudi, Tamil Nadu. Daeseung Autoparts India will receive around 8 million units, enabling it to meet nearly 60% of its Kanchipuram facility's total power demand with renewable energy. This transition is projected to offset approximately 5,800 metric tonnes of CO2 equivalent emissions each year.

Its sister company, Ilgahng Automotive, will receive 4.7 million units of power, which will offset an additional 3,400 metric tonnes of CO2e annually. Together, the deal will reduce carbon emissions by over 9,200 metric tonnes per year, equivalent to taking thousands of gasoline-powered cars off the road.

This partnership is facilitated by Tamil Nadu's progressive energy policies. The state, a leader in India's renewable energy capacity, has implemented regulations like the Green Energy Open Access (GEOA) rules, which streamline the process for industrial consumers to procure clean power directly from third-party generators. This policy framework, combined with Sunsure's flagship state initiative, #TamilNattinSakthi (The Power of Tamil Nadu), is creating a fertile ground for green manufacturing.

"Daeseung has always believed in powering progress responsibly," said Mr. Shin Sangki, Managing Director of Daeseung Autoparts India. "Our collaboration with Sunsure Energy allows us to align our India operations with the Group's global sustainability goals. By sourcing nearly 60% of our power requirements from solar energy, we are significantly reducing our carbon footprint while strengthening our resilience against future energy cost volatility."

A Blueprint for Global Supply Chains

The move by Daeseung and Ilgahng reflects a broader strategic shift within the global automotive industry. As major automakers like Hyundai and MG Motor set ambitious RE100 and carbon neutrality targets, the pressure cascades down to their supply chain partners. Component manufacturers are increasingly required to demonstrate their commitment to sustainability, not just as a matter of corporate social responsibility, but as a prerequisite for doing business.

Daeseung Group, the South Korea-based parent company, has a global target of achieving carbon neutrality by 2040. This PPA in India is a tangible execution of that strategy, integrating sustainability directly into its international manufacturing footprint. It serves as a model for how foreign direct investment can simultaneously drive industrial growth and contribute to India's climate objectives.

The Indian automotive component industry, projected to reach a valuation of $200 billion by 2030, is at a critical juncture. Its growth is increasingly intertwined with its ability to adapt to green mandates. This deal signals that adopting renewable energy is becoming a key competitive differentiator, enabling suppliers to secure their position within the evolving, eco-conscious global automotive value chain.

The Economic and Strategic Case for Clean Energy

While the environmental benefits are clear, the decision is also rooted in sound economic and strategic logic. Long-term PPAs, like the ones signed with Sunsure, offer a hedge against the price volatility of grid-supplied power, which is often tied to fluctuating fossil fuel costs. By locking in a predictable energy price for years to come, companies can achieve greater financial stability and operational certainty.

Mr. Shin Sangki highlighted this strategic advantage, noting, "We chose Sunsure Energy as our partner based on their strong industry credentials, proven execution capabilities, timely delivery of power, and deep development experience across India."

Sunsure Energy, founded in 2014 and backed by a $400 million equity commitment from Partners Group AG, has positioned itself as a key enabler of this industrial transition. The company specializes in providing "round-the-clock" (RTC) renewable energy by integrating solar, wind, and battery storage solutions. This capability is critical for industrial clients who require a firm, uninterrupted power supply that solar or wind alone cannot guarantee.

"We are delighted to welcome Daeseung Autoparts India and Ilgahng Automotive to our growing portfolio of global manufacturing customers," commented Mr. Shashank Sharma, Founder, Chairman & CEO at Sunsure Energy. "Daeseung's trust in Sunsure underscores our ability to serve the most respected industrial names with customized, firm, round-the-clock renewable energy solutions."

Powering India's Industrial Ambitions

This partnership is a microcosm of India's larger effort to decarbonize its industrial sector, which accounts for roughly 30% of the nation's total greenhouse gas emissions. To meet its ambitious goal of net-zero emissions by 2070, India is implementing policies like the Perform, Achieve and Trade (PAT) scheme and developing a national carbon market to incentivize emission reductions.

Independent Power Producers (IPPs) like Sunsure are at the forefront of this transformation. With 700 MW of operational assets and a massive 7.1 GW pipeline of projects under development across key industrial states, Sunsure is rapidly scaling up the infrastructure needed to power India's industrial growth sustainably. The company's development pipeline in Tamil Nadu alone exceeds 1,100 MW of RTC capacity, signaling a deep commitment to the state's role as a green manufacturing powerhouse. As India continues on its path to becoming a global manufacturing hub, the ability to offer clean, reliable, and cost-effective energy will be paramount to attracting and retaining high-value industrial investment.