Hyundai Motor Company and Kia Corporation have solidified their commitment to the Indian electric vehicle (EV) market through a Memorandum of Understanding (MoU) with Exide Energy Solutions (Exide Energy), a prominent Indian battery manufacturer. This partnership aims to equip future EV models in India with locally produced lithium-iron-phosphate (LFP) batteries, marking a significant step in the companies' expansion plans.

Key Milestone at Namyang Research and Development Center

The MoU signing ceremony, held at Hyundai Motor Group's Namyang Research and Development Center in South Korea, was attended by key figures including Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, Chang Hwan Kim, Head of Electrification Energy Solutions Tech Unit, Duk Gyo Jeong, Head of Electric Vehicle Parts Purchasing Sub-Division, and Dr. Mandar V Deo, Managing Director, and CEO of Exide Energy. This collaboration underscores the strategic intent to localize EV battery production, particularly focusing on LFP cells.

Strategic Importance of Localized Battery Production

Highlighting the significance of the Indian market in the global EV landscape, Heui Won Yang emphasized the importance of securing cost competitiveness through localized battery production. The partnership with Exide Energy Solutions Ltd. positions Hyundai Motor and Kia as frontrunners in incorporating domestically produced batteries into their upcoming EV models, aligning with India's carbon neutrality goals.

Exide Energy Solutions

Exide Industries, headquartered in Kolkata, boasts over 75 years of expertise and market leadership in lead-acid batteries. Exide Energy Solutions, a wholly owned subsidiary established in 2022, signifies the company's strategic pivot towards manufacturing lithium-ion cells, modules, and packs. This collaboration marks a pivotal moment in Hyundai Motor and Kia's endeavour to expand their battery development, production, and supply partnerships in the Indian market.

India's EV Market Growth Trajectory

India's automotive market is increasingly recognized as a pivotal player in the global EV landscape. In FY2024, retail sales of EVs surged by 42% year on year, reaching 1.67 million units. Electric two and three-wheelers, cars, and SUVs are witnessing unprecedented growth, underscoring the immense potential of the Indian market in driving the adoption of electric mobility.

The partnership between Hyundai Motor, Kia, and Exide Energy represents a pivotal moment in India's transition towards electric mobility. By localizing battery production and leveraging Exide Energy's expertise, both automotive giants are poised to redefine the EV landscape in India.

Stay tuned to automotive industry news and updates at SAMIL. For more information about Shriram Automall, its group companies and services, visit www.samil.in.