Shares of Amara Raja Energy & Mobility (AREML), formerly Amara Raja Batteries, rose nearly 1% in the morning trading session on Friday, December 20, 2024, following a significant announcement. Hyundai Motor India (HMIL) revealed it would equip its domestic product lineup with Amaron’s Made-in-India AGM (Absorbent Glass Mat) battery technology for its vehicles. This move marks a key milestone for Amara Raja Energy & Mobility, as HMIL will source AGM batteries under its existing procurement agreement with the company.
The AGM batteries will be used as SLI (Starting, Lighting, and Ignition) batteries in Hyundai models, with the transition expected to be implemented by Q4 of FY 2024-2025. Notably, Hyundai will be the first auto OEM in India to adopt indigenously manufactured AGM battery technology, highlighting the company’s commitment to localization and the Indian government’s ‘Atmanirbhar Bharat’ initiative.
The AGM batteries, which have outperformed conventional CMF (Complete Maintenance Free) batteries by 150% in durability tests, are better suited to Indian driving conditions due to their extended lifespan and ability to operate across a wider temperature range. This technology aligns with Hyundai’s aim to introduce innovative, locally sourced solutions for its Indian customer base.
Amara Raja Energy & Mobility recently reported a strong performance for Q2 FY25, with a 6.32% rise in net profit to ₹240.71 crore and a notable 11.55% increase in revenue, reaching ₹3,135.83 crore. This growth was driven by strong volumes in automotive aftermarket and export markets.
The collaboration with Hyundai and the continued financial growth signal a positive outlook for Amara Raja Energy & Mobility in the Indian battery manufacturing sector.
