(Bloomberg) -- A rally in India’s battery maker stocks this month looks poised to extend amid optimism over further collaborations with foreign vehicle manufacturers. 

A rally of 45% has made Exide Industries Ltd. among the top gainers on the broader S&P BSE500 Index in April, after announcing a strategic cooperation to produce lithium iron phosphate cells for Hyundai Motor Co. and Kia Corp. That also boosted shares of Amara Raja Energy & Mobility Ltd.

Global carmakers, including BYD Co., are doubling down on the burgeoning electric vehicle market in the South Asian nation as sales cool in China, the US and Europe. That’s expected to give local component makers a long term boost. 

“These stocks are in a very good macro environment,” said Abhay Agarwal, a fund manager at Piper Serica Advisors Pvt. “This will be a big story for the next five years” that can provide multifold returns.

Exide and Amara Raja added a combined market value of about $2 billion in April as investors boosted their bets in the nascent clean car market. 

Purchase subsidies, lower operating costs and state-level policy will continue to support growth in the industry, analysts said. Meanwhile, new model launches and the expected installation of more fast chargers may boost demand from consumers. 

READ: India Car Sales Jump With Demand for Electric, SUVs Behind Rise

The deal with Koran firms may open the door for Exide to work with other foreign carmakers, said Amit Hiranandani, an analyst at Smifs Ltd.

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