Exide Industries in Talks with 2W, 3W Player for Battery Manufacturing

Exide Industries, a leading battery manufacturer, stated during a May 6 investor call that it is in advanced talks to manufacture batteries with two significant two-wheeler firms and one three-wheeler operator. Exide Industries' stock jumped by 2% shortly after the concall's specifics were made public.

Product development has already started for the contract, according to the management's report on its collaboration with Hyundai Motor India. Following the announcement of a binding term sheet with Exide Industries' subsidiary Exide Energy Solutions back in December 2024, Hyundai Motor India would be the first Indian carmaker to use locally produced battery cells for its electric vehicles. It is anticipated that the collaboration will assist Hyundai in procuring batteries locally and guarantee cost competitiveness.

Additionally, Exide Industries affirmed that it supplies auto OEMs with supplementary batteries for E2W and E4W. As the need for vehicles is driven by greater urbanization, the company has been witnessing an increase in demand for sophisticated batteries. Exide stated that in addition to providing OEMs with auxiliary batteries, it is developing new goods for inverters, e-rickshaws, and commercial vehicles.

Along with introducing new products and exporting to more recent regions, the battery manufacturer hopes to provide end-to-end rooftop solar systems, which it claims would be a major source of income for the business. The company is anticipated to grow in the near future due to the Center's previously announced 500GW renewable energy objective by 2030 and a 40GW rooftop solar electricity output target by 2026, according to Exide Industries.