As part of their efforts to expand into the electric vehicle (EV) market, Hyundai Motor firm (Hyundai Motor) and Kia Corporation (Kia) inked a Memorandum of Understanding (MoU) for strategic cooperation with Exide Energy Solutions Ltd (Exide Energy), a major Indian battery firm.
The Namyang Research & Development Center of the Hyundai Motor Group in South Korea hosted the signing event.
Hyundai Motor and Kia intend to expand their electric vehicle (EV) ambitions for the Indian market and localize their EV battery production, with a particular focus on lithium-iron-phosphate (LFP) cells.
According to a release, they would be positioned as industry leaders when it comes to using locally made batteries in their next generation of electric vehicles in the Indian market.
Heui Won Yang, President and Head of Hyundai Motor and Kia’s R&D Division, stated, “India is a key market for vehicle electrification due in part to the government’s carbon neutrality goals, which makes securing cost competitiveness through localized battery production crucial.”
“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.”
With more than 75 years of experience and a dominant position in the lead-acid battery market, Kolkata-based Exide Industries Ltd is a top provider of lead-acid batteries in India.
A wholly owned subsidiary of Exide Industries Ltd, Exide Energy Solutions Ltd was founded in 2022 to venture into the production of lithium-ion cells and modules.
The commencement of Hyundai Motor and Kia’s endeavors to broaden their exclusive battery development, production, supply, and partnerships in the Indian market is signified by this strategic cooperation with Exide Energy.
India is widely acknowledged as a highly promising global automotive industry, and the nation is quickly becoming a vital component in the manufacturing and distribution of electric vehicles.
Hyundai Motor and Kia are assuming the lead in the Indian market by launching their EV models in order to establish themselves as the frontrunners in the Indian automotive sector. These companies recognize the strategic significance of the Indian market.
Retail auto sales in India saw a notable 10 percent year-over-year growth for the entire 2023–24 season, according to data released by the auto dealers association on Monday. The 2W, 3W, passenger vehicle, tractor, and commercial vehicle segments registered growth rates of 9 percent, 49 percent, 8.45 percent, 8 percent, and 5 percent, respectively, setting record highs in the 3W, passenger vehicle, and tractor categories.
