Exide Industries expects to book its first revenue from electric vehicle cell manufacturing in Q3 FY27, becoming one of the first homegrown manufacturers to monetise locally made lithium-ion cells through sales to external customers. According to Managing Director and CEO Avik Roy speaking after the company's annual general meeting, the company will begin supplying LFP (lithium iron phosphate) cells to a three-wheeler customer, with commercialisation of NMC (nickel manganese cobalt) cells for two-wheelers to follow. This represents a significant milestone as Exide joins the ranks of domestic manufacturers entering the commercial EV cell market, with the company targeting late 2027 for its first revenue generation from this segment.
The company is building a 6GWh plant in Bengaluru in the first phase, with a 6GWh expansion in phase 2, for a total capacity of 12GWh to capitalize on India's new energy transition through 2030. As reported by Outlook Business, Exide has already supplied lithium-ion cell samples produced at its Bengaluru facility to original equipment manufacturers (OEMs) for homologation, the final stage before commercial deployment. The Bengaluru gigafactory has an initial capacity of 6GWh and is designed to manufacture both lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) cells. Initially, LFP cells will cater to telecom infrastructure, battery energy storage systems and electric three-wheelers, while two-wheeler applications using NMC chemistry will follow after completing longer homologation cycles. Roy estimated India's lithium-ion battery market at around 130 GWh by 2030, noting that the key challenge would be ramping up manufacturing yields to produce high-quality cells consistently.
Exide's entry into commercial EV cell manufacturing comes as the competitive landscape shifts in India's battery sector. As Roy explained, "the reality of imported cells is changing, with the cost advantage of Chinese players diminishing due to multiple factors, ranging from a surge in raw material prices to the removal of export tax rebates." The company has started producing samples, which are being sent to customers for product testing before they are purchased through commercial partnerships. Exide also has a partnership with Hyundai Motors to supply NMC cells for its electric vehicles in the Indian market, although production is expected to accelerate for two- and three-wheeler cells. The company's battery pack plant in Prantij, Gujarat will support complete battery pack solutions for customers who prefer integrated systems.
Exide's second priority focuses on protecting its core lead-acid battery business, which the company envisages as a ₹45,000-crore market with potential growth to ₹55,000 crore in the next five years. According to Roy during the AGM, the company has maintained market leadership for decades and aims to participate in this market's growth through portfolio enhancement, enhanced go-to-market strategy, improved competitiveness, and gaining market share to grow its core legacy business. The company reported standalone revenue of ₹17,269 crore in FY26 and has set a target of crossing ₹20,000 crore in revenue from its core lead-acid battery business by FY2027-28, driven by high single-digit to low double-digit annual growth. The company continues to dominate the conventional battery market, with nearly 60% share in the automotive OEM segment and around 50% in the replacement market.
