Hyundai to Use Made-in-India Amaron Batteries in Domestic Vehicles

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Hyundai will begin using Amaron’s Made-in-India AGM batteries in its domestic vehicles starting Q4 FY 2024-25. This makes Hyundai the first automaker in India to adopt locally produced AGM battery technology, enhancing vehicle performance and durability. Amaron batteries, from Amara Raja Energy & Mobility, outperform conventional CMF batteries with 150% better durability in tests. Designed as Starting, Lighting, and Ignition (SLI) batteries, they meet stringent Real Driving Emissions (RDE) norms, including India’s BS6 Phase 2 standards. This partnership supports Hyundai’s localization strategy and strengthens Amara Raja’s role in energy and mobility.

1. Introduction: The Transition to Made-in-India AGM Batteries for Hyundai Vehicles

Hyundai Motor India Limited (HMIL) has recently announced a significant milestone in its strategy to enhance its domestic offerings. Starting in the fourth quarter of FY 2024-25, the company will integrate Made-in-India Amaron batteries to power Hyundai vehicles. Hyundai will use locally made AGM batteries in its domestic vehicles, becoming the first in India to adopt this technology. This shift highlights innovation and the potential of localized manufacturing, enhancing sustainability, performance, and lifespan.

2. Background of Amara Raja Energy & Mobility Limited

Amara Raja Energy & Mobility Limited, formerly Amara Raja Batteries, is one of India’s largest energy and mobility companies. Established in 1985, it has grown from a small battery maker to a leader in energy storage, serving industries like telecom, power, oil & gas, railways, and automotive.

The company is known for its innovation and quality, expanding its portfolio to include advanced technologies like Absorbent Glass Mat (AGM) batteries, which will now power Hyundai vehicles in India. Amara Raja is also advancing in renewable energy and electric mobility, positioning itself as a key player in India’s green energy transition.

3. How the Made-in-India Amaron Batteries Will Power Hyundai Vehicles

Hyundai’s decision to equip its vehicles with Amaron’s AGM batteries is a strategic one, designed to address the increasing demand for durable, efficient, and sustainable automotive components. These AGM batteries outperform traditional CMF (Complete Maintenance Free) batteries by over 150% in terms of real-world durability. They are capable of operating in a wider temperature range, which is essential for the diverse climates found across India.

Furthermore, these batteries offer an extended lifespan compared to conventional batteries, which means they will deliver long-term value to Hyundai customers. The Amaron AGM batteries are designed to meet the Real Driving Emissions (RDE) norms, aligning with India’s BS6 Phase 2 environmental standards. This commitment to green energy solutions and improved battery technology is reflective of Hyundai’s goal to localize its operations and meet the needs of Indian consumers with innovative, cost-effective solutions.

4. The Working Model and Revenue Model of Amara Raja Energy & Mobility

Amara Raja Energy & Mobility Limited operates on a well-established business model that encompasses manufacturing, technology development, and strategic partnerships. Amara Raja generates revenue from automotive batteries, energy storage solutions, and specialized equipment for various sectors.

The company has expanded into the EV sector, aligning with India’s push for electric mobility. Its revenue model includes long-term contracts, such as with Hyundai for AGM batteries.

5. Hyundai’s Vision for Localization and Innovation

Hyundai has always been at the forefront of innovation in the Indian automotive market. By introducing Made-in-India Amaron batteries, Hyundai strengthens its commitment to local manufacturing, improving quality and cost-effectiveness in its vehicles.

This collaboration is also a part of Hyundai’s broader sustainability strategy. By using energy-efficient and locally sourced technologies, the company aims to reduce its carbon footprint, improve operational efficiencies, and offer more affordable, high-performance vehicles to Indian consumers.

6. Impact on the Indian Automotive and Energy Ecosystem

The integration of Made-in-India Amaron batteries into Hyundai’s vehicles represents a major shift in India’s automotive sector.This partnership boosts India’s position in the global electric vehicle market and encourages more investment in local automotive manufacturing.

For Amara Raja Energy & Mobility, it marks a key step in providing advanced energy solutions for the automotive sector. As Hyundai’s exclusive AGM battery supplier, Amara Raja gains a long-term, high-volume customer, strengthening its reputation as a leader in energy solutions.

7. Conclusion: A Game-Changer for Hyundai and Amara Raja

In conclusion, the Hyundai-Amara Raja partnership boosts India’s automotive and energy sectors, advancing technology, sustainability, and performance.

By adopting Amaron’s AGM battery technology, Hyundai sets a new industry standard, reinforcing its commitment to localization and environmental responsibility. For Amara Raja, this collaboration highlights its expertise in energy storage, positioning the company as a key player in India’s green energy future..

Learning for Startups and Entrepreneurs

This collaboration provides valuable lessons for startups and entrepreneurs, especially those in the automotive and energy sectors. Key takeaways include:

• Innovation and Localisation: Startups should focus on innovating locally sourced technologies that can cater to the unique needs of regional markets.
• Partnerships for Growth: Strategic partnerships with established players can help scale operations and enter new markets.
• Sustainability Focus: In the age of conscious consumerism, focusing on sustainable, green technologies can provide startups with a competitive edge.

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