The shares of the world’s fourth-largest automotive and industrial battery manufacturer gained 15 percent to ₹ 369.95 per share after Hyundai Motor and Kia Corporation signed a MoU to manufacture electric vehicle (EV) batteries in India.
At 1:20 p.m, Exide Industries Ltd shares were trading at ₹371.55 per share, up 15.50 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹30,600 crore.
According to the report, on April 8, South Korean automotive giants Hyundai Motor Company (HMC) and Kia Corporation signed a Memorandum of Understanding (MOU) with battery manufacturer Exide Energy Solutions Ltd.
The agreement aims to localize electric vehicle (EV) battery production in India and to supply batteries for their upcoming EV models in the Indian market. This partnership is part of Hyundai Motor Group’s strategic expansion plan for EVs in India.
This collaboration represents a strategic initiative by Hyundai Motor Group to enhance its exclusive battery development, production, supply, and partnerships in the Indian market. Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, highlighted the significance of India’s vehicle electrification efforts driven by the government’s carbon neutrality goals.
Yang emphasized that the global partnership with Exide Energy Solutions Ltd. will provide a competitive advantage to Hyundai Motor and Kia by utilizing locally produced batteries for their future EV models in India. Both companies plan to localize EV battery production, particularly focusing on lithium-iron-phosphate (LFP) cells, aligning with their EV expansion strategies for the Indian market.
Hyundai Motor India has already announced plans to introduce a high-volume EV model in 2025, complementing its existing EV lineup consisting of the IONIQ5 and Kona models. Meanwhile, Kia India offers the EV6 model as part of its EV offerings.
Exide Industries Ltd is the world’s fourth-largest manufacturer of automotive and industrial lead-acid batteries Exide Industries Ltd, is primarily engaged in the manufacturing of storage batteries and allied products.
Exide Industries Limited supplies batteries for submarines, including high-end submarine batteries. Exide Industries Limited is also involved in the development of indigenous Type-IV class submarine batteries.
The company reported a 12 percent increase in revenue year on year, from ₹3,538 crore in Q3FY23 to ₹3,980 crore in Q3FY24. During the same period, net profit increased by 2.5 percent from ₹198 crore to ₹203 crore.
Exide Industries Ltd shares have gained 42% in the last six months and 100 % in a last 12 months.
Written by Omkar Chitnis
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