Exide Shares Up 13%; Hyundai Motor and Kia Announce Partnership With Exide

Exide's share price shot up 13% on Monday, April 8, 2024, after Hyundai Motor and Kia announced a partnership with Exide Energy Solutions Limited. 

The Indian auto industry is moving toward electric vehicles, so EVs are likely to directly benefit battery stocks. 

The South Korean auto major, Hyundai Motor and Kia Corporation, signed a Memorandum of Understanding with Exide Energy Solutions Limited. This deal aims to expand the electric vehicles business in India. Hyundai Motor Group said in a statement. 

Hyundai Motor Plans After Exide Partnership

Kia Corporation and Hyundai Motor aim to localise their EV battery production, focusing on Lithium-iron phosphate cells in line with the expansion of EV plans for the Indian market.

This strategic move will position them as pioneers in applying domestically produced batteries in their upcoming EV models. 

Heui Won Yang, President and Head of Hyundai Motor said "India is a key market for vehicle electrification due in part to the government's carbon neutrality goals, which makes securing cost competitiveness through localised battery production crucial."

Hyundai gained a competitive advantage in the EV market through this global partnership with Exide Energy Solutions Limited.

Hyundai has already announced its plans to launch its high-volume EV model in 2025. The company currently sells the IONIQ5 and KONA in the EV segment. On the other hand, Kia sells the EV6 models.

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Exide Share Price Update

After the recent news, the share price of two famous battery stocks have witnessed a significant increase. The stocks Amara Raja Energy and Mobility Limited and Exide Energy Solution Limited which have surged 7% and 13% respectively. Currently, Exide shares are trading at Rs 375 per share.

Before showing a sharp rise, Exide's share price took support near Rs 300 and formed a strong base. This partnership has positively impacted investors' sentiment, and the stock has run toward its all-time high.

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