Hyundai, Kia partner with Exide Energy for EV battery localisation; stock up 13%
Exide Industries witnessed a remarkable 13 percent surge during Monday’s intraday trading session, reaching a record high of ₹363.35 after South Korean auto giants Hyundai Motor Company and Kia Corporation announced a partnership with Exide Energy Solutions Ltd, a subsidiary of Exide Industries for electric vehicle (EV) battery localisation in India.
The collaboration signals a significant development in the country’s electric vehicle sector. This partnership not only boosts Exide Industries’ market presence but also underscores its pivotal role in catering to the burgeoning demand for electric vehicle components in India.
Hyundai Motor Company and Kia Corporation have inked a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, a prominent Indian battery company, as part of their expansion plans in the electric vehicle (EV) sector, Hyundai Motor Group announced in a statement.
The MOU signifies Hyundai and Kia’s commitment to localizing their production of EV batteries, particularly focusing on lithium-iron-phosphate (LFP) cells, aligning with their ambitious EV plans for the Indian market.
By leveraging domestically produced batteries, Hyundai and Kia aim to position themselves as pioneers in integrating locally sourced batteries into their upcoming EV models for the Indian market, according to the statement.
Highlighting India’s significance in vehicle electrification, Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, emphasized the importance of securing cost competitiveness through localized battery production, given the government’s carbon neutrality objectives.
The collaboration with Exide Energy Solutions Ltd represents the initial step in Hyundai and Kia’s endeavor to expand their battery development, production, supply, and partnerships exclusively for the Indian market, Yand added.
Hyundai Motor India has already disclosed plans to introduce its high-volume EV model by 2025, adding to its existing EV lineup consisting of models like IONIQ5 and Kona. Meanwhile, Kia India offers the EV6 model.
Exide Energy Solutions (EES) is a wholly-owned subsidiary of Kolkata-based Exide Industries Ltd, boasting over 75 years of experience and market leadership in lead-acid batteries, making it a key player in India’s battery industry landscape.
Stock Price Trend
Exide Industries has surged almost 78 percent in the last 1 year and 15 percent in 2024 YTD, giving positive returns in two and negative in two in the 4 months so far of this year.
It has rallied 20 percent in April till date after a 4.9 percent decline in March and a 4.4 percent fall in April. Meanwhile, it rose 5.4 percent in January 2024.
While the stock hit its record high of ₹363.35 in intra-day deals today, it has now soared 103 percent from its 52-week low of ₹179, hit on April 10, 2023.
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Published: 08 Apr 2024, 12:41 PM IST
