Exide in talks with OEMs to launch new premium car battery in India
Informist, Friday, Mar 15, 2024
--Exide official:Plan new premium lead-acid battery for cars in India
--Exide official: 1 OEM sought bid for new premium lead-acid battery
--Exide official: See tender by more OEMs for new lead-acid battery
--Exide official: Already exporting new premium lead-acid battery
By Avishek Rakshit
KOLKATA – Exide Industries Ltd is planning to launch a new premium lead-acid batteries for the automotive segment in India, sources aware of the development told Informist. A company official confirmed the development but did not share further details.
The company has been making such batteries since 1995 but they were largely restricted to industrial backup application, said the company official, adding that it very recently started exporting the new premium batteries.
The company’s new premium absorbent glass mat lead-acid batteries, to be used in fossil-fuel based cars, comes at a time when it has been bullish on the lithium-ion battery, used in electric vehicles, terming it as the future of automotive batteries in the country.
Commonly referred to as 'AGM batteries', these are priced higher than the usual lead-acid batteries which dominates Exide's domestic sales volumes. Exide's current portfolio for the automotive sector comprises nearly all lead-acid batteries across different price points under three different brands. These comprise the bulk of its revenue. The company also sells assembled batteries for electric rickshaws.
"The requirements from OEMs (original equipment manufacturers) have just started. One major OEM in India has floated an RFQ (request for quote) against their specification of an AGM battery for SLI (starting, light, and ignition) application. More are expected," the official at Exide said.
"For SLI application in automotive segment, we have recently made our first supply to the export market," the official said, adding, "We are adding some incremental plant and equipment specifically required for manufacture of SLI AGM batteries."
The official, however, did not disclose details of the investment that this new battery variant will entail.
Sources said that although Exide is bullish on the upcoming lithium-ion battery business, it is pinning its hopes on the existing lead-acid battery portfolio as fossil fuel driven cars will still be in demand.
"The company has been trying to constantly improve its margins and, hence, has been focussing on premiumising the portfolio; the AGM battery rollout is going to happen because of this," one of the sources aware of the company’s plans said.
AGM batteries are expected to be priced much higher than the normal lead-acid batteries, but they offer nearly double the shelf-life owing to low discharge rates, and are spill-proof.
A sector analyst tracking the company said that Exide is the market leader in the country’s automotive battery segment and it is unlikely to divert its attention fully to lithium-ion batteries and thereby vacate its market leadership position in lead-acid batteries. All major automotive makers in the country use lead-acid batteries in the factory-rolled vehicles.
The company has around 60% market share in three-wheeler and four-wheeler automotive space and around 75% market share in the two-wheeler vehicles segment.
At the same time Exide is also investing heavily on its lithium-ion battery project in Karnataka. As of December-end, Exide has already invested 18.2 bln rupees of equity in its subsidiary Exide Energy Solutions Ltd which will handle the lithium-ion business. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
