Ashok Leyland Ltd, one of India’s leading commercial vehicle manufacturers and a flagship company of the Hinduja Group, has announced a major strategic move to turbocharge the electric vehicle (EV) landscape in India. The company has entered into a long-term, exclusive partnership with the CALB Group, a premier battery technology firm from China, to develop and manufacture next-generation batteries. This alliance reflects a significant commitment by Ashok Leyland to invest over Rs 5000 crore over the next 7 to 10 years in creating a localized battery manufacturing ecosystem aimed at serving automotive as well as energy storage sectors.
Key Developments at a Glance
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Exclusive long-term partnership established with CALB Group, a leading battery technology player from China
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Planned investment exceeding Rs 5000 crore for battery development and manufacturing spanning 7 to 10 years
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Focus on next-generation batteries supporting both automotive EVs and non-automotive energy storage systems
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Creation of a Global Centre of Excellence dedicated to R&D in battery tech, recycling, and manufacturing innovation
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Strategy supports Ashok Leyland’s electric vehicle portfolio including its subsidiary Switch Mobility
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Initiative to cater to wider industry demand beyond Ashok Leyland, potentially benefiting the entire EV ecosystem in India
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Alignment with India’s government vision for sustainable mobility and reducing fossil fuel dependence
Strategic Partnership and Investment Vision
This landmark partnership with CALB comes in the backdrop of improving India-China bilateral relations and reflects a mutual commitment to advancing electric mobility and clean energy solutions. Ashok Leyland’s chairman, Dheeraj Hinduja, highlighted that the collaboration is a vital step toward creating a localized battery supply chain in India. This localized approach aims to accelerate the adoption of electric vehicles by ensuring domestic availability of advanced, reliable battery technologies. The investment will enable Ashok Leyland and its fully-owned subsidiary, Switch Mobility, to secure cutting-edge batteries tailored for their electric vehicle offerings. More broadly, this development allows Ashok Leyland to support non-captive demands across the entire automotive sector and the burgeoning energy storage industry.
Battery Ecosystem and R&D Innovation
Shenu Agarwal, Managing Director and CEO of Ashok Leyland, emphasized that the initial phase of the business will concentrate on automotive applications but will expand to non-automotive sectors including critical energy storage systems. A keystone of this ambitious project will be the establishment of a Global Centre of Excellence that will serve as a hub for research and development. The center’s focus will span innovations in battery materials, battery management systems, recycling technologies, and advanced manufacturing processes. This integrated approach not only fosters sustainability but also pushes the boundaries of battery technology performance and life cycle management.
Implications for India's EV Market and Energy Future
Ashok Leyland’s Rs 5000 crore investment and the partnership with CALB signal a major milestone in India’s electrification journey. By investing heavily in battery localization, the company directly addresses key supply chain challenges that have hindered large-scale EV adoption, including high import dependency. The move complements government initiatives targeting a green economy and energy self-reliance, helping reduce the nation’s fossil fuel footprint. Moreover, the expanded battery manufacturing capacity will support a broader industry ecosystem, benefitting manufacturers, consumers, and clean energy users alike.
The bolstered battery supply chain created through this partnership will position India as a competitive player in the global electric vehicle and energy storage market. Ashok Leyland's commitment demonstrates corporate leadership in driving sustainable mobility solutions in India’s rapidly evolving transport sector.
Source: Economic Times, Business Standard, Reuters, New Indian Express, Moneycontrol, Saur Energy, Fortune India
