South Korean automotive giants Hyundai Motor Company (HMC) and Kia Corporation have officially announced a strategic collaboration with Exide Energy Solutions Ltd, a prominent Indian battery manufacturer, to localize electric vehicle (EV) battery production in India. This move has propelled Exide Industries’ shares to surge by over 12%, reaching a remarkable 52-week high of Rs 363. Trading volume has also seen a significant uptick, with one crore shares exchanging hands on the exchanges, far surpassing the one-month daily traded average of 22 lakh shares.
In a statement, the Hyundai Motor Group revealed that both Hyundai Motor and Kia Corporation have inked a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, underscoring their commitment to expand their presence in the EV market. Exide Energy Solutions (EES) operates as a wholly-owned subsidiary of Exide Industries Ltd, headquartered in Kolkata, boasting a rich legacy of over 75 years and holding a dominant position as a lead-acid battery supplier in India.
The collaboration is part of Hyundai and Kia’s overarching strategy to localize EV battery production, with a particular emphasis on lithium-iron-phosphate (LFP) cells, aligning closely with their ambitious EV plans tailored for the Indian market.
“This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market,” stated a representative in the released statement.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, highlighted the significance of India’s market in vehicle electrification, attributing it to the government’s carbon neutrality goals. “Securing cost competitiveness through localized battery production is crucial,” Yang emphasized.
“Through this global partnership with Exide Energy Solutions Ltd, we will gain a competitive advantage by equipping Hyundai Motor and Kia’s future EV models in the Indian market with locally produced batteries,” Yang further added.
Hyundai Motor Group outlined that this strategic cooperation with Exide Energy marks the initiation of HMC and Kia’s endeavors to expand their exclusive battery development, production, supply, and partnerships in the Indian market.
Hyundai Motor India has already disclosed its plan to launch a high-volume EV model in 2025, alongside its current offerings, IONIQ5 and Kona, in the EV segment. Similarly, Kia India markets the EV6 model.
As of April 8, 12:09 pm, Exide Industries was trading at Rs 360.95 apiece on the NSE.
Sources: moneycontrol.com
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