**Amara Raja Targets North American Market for Export Growth**
Amara Raja Energy and Mobility Ltd, India’s second-largest battery manufacturer, is setting its sights on the North American market with an ambitious plan to increase its export revenue share from 13% to 25% over the next five years. The Hyderabad-based company aims to leverage its expertise in advanced lead-acid battery technology, particularly in Absorbent Glass Mat (AGM) batteries, to establish a strong foothold in this lucrative market.
In a recent statement, Harshavardhana Gourineni, executive director at Amara Raja, emphasized the company’s commitment to expanding its local distribution network in North America. This strategic move comes at a time when U.S. tariffs have created uncertainty for Indian businesses. Gourineni noted, “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 batteries.”
AGM technology, known for enhancing battery life and supporting stop-start functions in vehicles, positions Amara Raja uniquely in the market. The company is currently the only Indian manufacturer supplying AGM batteries to original equipment manufacturers (OEMs) and aims to capitalize on this technological advantage to grow its market share and foster long-term customer relationships.
In the fiscal year 2025, Amara Raja reported revenues of ₹12,405 crore, with 13% derived from exports to automotive and industrial clients globally. While the company does not disclose its export revenue by region, the focus on North America is noteworthy, especially given the challenges posed by tariffs imposed by the previous U.S. administration.
Despite facing a 25% import duty, Amara Raja is investing in local distribution and warehousing in North America rather than pursuing full-scale manufacturing. The company is also exploring options for ‘local finishing’ in the U.S. to enhance its cost competitiveness.
The North American market represents a significant opportunity for Indian auto component manufacturers, with total exports reaching $23 billion in FY25, a third of which came from this region. However, Gourineni acknowledges that the imposition of tariffs has added a layer of uncertainty to the business landscape.
In conclusion, Amara Raja’s strategic focus on the North American market, coupled with its innovative AGM battery technology, positions the company for potential growth in export revenues. As it navigates the challenges of tariffs and competition, the firm is poised to strengthen its presence in one of the world’s most advanced automotive markets.
**FAQ**
**What is Amara Raja’s goal for export revenue in the next five years?**
Amara Raja aims to increase its export revenue share from 13% to 25% within the next five years, focusing on the North American market and leveraging its AGM battery technology.
