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Country’s second-largest battery maker wants to crack North American market

NewsCountry’s second-largest battery maker wants to crack North American market Ayaan Kartik6 min read5 Jan 2026, 05:30 AM ISTHarshavardhana Gourineni, executive director at Amara Raja. SummaryAmara Raja is targeting the North American market to double its export revenue share to 25% within five years. New Delhi: The country’s second-largest battery manufacturer, Amara Raja Energy and Mobility Ltd, is betting on expansion in the US market as part of its bid to double the share of revenue from exports in the next five years. The Hyderabad-based auto ancillary firm is doubling down on building a local distribution network in the North American market to benefit from its edge in one of the advanced technologies in the lead acid battery industry to win incremental business at a time when tariffs in the US have brought uncertainty for Indian businesses, according to a top executive.“One of the most exciting opportunities, especially on the lead acid side, is building ourselves up in North America. That's where we see certain technology trends like a move towards AGM (Absorbent Glass Mat) batteries,” Harshavardhana Gourineni, executive director at Amara Raja, told Mint. Also Read | Amara Raja may gain from GST cuts on batteries“We're the only manufacturer in India that's supplying AGM batteries to the OEMs. We'd like to use that technological prowess to build market share and build long-term and robust customer relationships,” he added. In FY25, the company earned ₹12,405 crore in revenue, of which 13% came from exports to automotive and industrial clients worldwide.

Country’s second-largest battery maker wants to crack North American market

Credit: Livemint

Key Highlights

  • The company does not disclose its export revenue by geography.
  • AGM is a technology used in lead-acid batteries, which leads to improved battery life and provides strong support for stop-start functions in vehicles. According to experts, AGM batteries are on the premium end of the lead-acid segment, used widely in start-stop vehicles, hybrids, SUVs, pickups, and as auxiliary batteries in EVs. Highlighting North America as a growth market has been a rare instance for an auto ancillary company in the last 10 months, given the imposition of reciprocal tariffs by US President Donald Trump’s administration to shore up domestic manufacturing. Key TakeawaysAmara Raja aims to increase export revenue from 13% to over 20-25% in five years. The company is banking on AGM battery technology, a premium lead-acid segment where they claim a manufacturing first in India. Despite a 25% import duty, the firm is investing in local distribution and warehousing in North America rather than full-scale manufacturing. The company is exploring ‘local finishing’ in the US to improve cost competitiveness. Amara Raja’s stock has significantly underperformed the Nifty Auto index, falling 19% compared to a 23% rise in the index. Tariff tripIn FY25, total exports of auto component makers reached $23 billion, with nearly a third of these exports coming from the North American market, which is the largest export base for Indian auto component makers. Gourineni admits that imposition of tariffs has introduced a layer of uncertainty, which creates an issue in building up the business, but insists that the company has been able to compete by using some carefully crafted strategies.“We've been at 25% duty for the last 10 months or so.
  • And yes, this definitely affects our competitiveness.
  • It also creates a lot of suspense and confusion around which direction this may move and how long,” he said. Also Read | A charged-up Amara Raja juggles margin pressure and lithium-ion ambitions“But the fact is, we've still been able to compete.
  • We've maintained our customer relationships.
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Sources

  1. Country’s second-largest battery maker wants to crack North American market

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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