Ashok Leyland, India’s second-largest commercial vehicle (CV) manufacturer and a flagship company of the Hinduja Group, has announced a massive ₹5,000 crore investment to develop a battery ecosystem in India over the next 7–10 years. The investment comes as part of a strategic partnership with China’s CALB Group, a global leader in lithium battery technology, to establish a localised battery supply chain and drive India’s shift towards sustainable mobility.

A Strategic Push for EV and Energy Storage Growth

The long-term partnership with CALB Group which specialises in lithium batteries, battery management systems, and energy storage technologies will enable Ashok Leyland to localise battery manufacturing in India. While the initial focus will be on powering Ashok Leyland’s EV portfolio and Switch Mobility’s electric vehicles, the company also aims to cater to non-captive demand across the automotive and energy storage sectors.

“Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the government’s vision,” said Dheeraj Hinduja, Chairman of Ashok Leyland.“Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate EV adoption and reduce dependence on fossil fuels.”

Global Centre of Excellence to Drive Battery R&D

As part of the initiative, Ashok Leyland plans to establish a Global Centre of Excellence to strengthen research and development (R&D) in:

• Battery materials and chemistries

• Battery recycling and second-life solutions

• Battery management systems (BMS)

• Advanced manufacturing processes

According to Shenu Agarwal, MD & CEO of Ashok Leyland, the new battery-focused business will start with automotive applications and later expand into energy storage solutions for diverse industries.

Supporting India’s Clean Mobility Roadmap

This ₹5,000 crore battery ecosystem investment adds to Hinduja Group’s other green mobility initiatives, which include:

• Electric vehicles (EVs) and electric mobility-as-a-service (eMaaS) solutions

• Charging infrastructure development

• Alternative fuel adoption (CNG, LNG, and hydrogen-powered vehicles)

• Financing support for EV buyers

With India rapidly transitioning to clean energy and electrified transportation, the move positions Ashok Leyland as a key player in the EV supply chain, while also reducing import dependence on critical battery components.

Why This Move Matters for India’s EV Ecosystem

The timing of this investment aligns with India’s ambitious targets for EV penetration, energy security, and battery manufacturing under the Production-Linked Incentive (PLI) scheme. By creating a domestic battery supply chain, Ashok Leyland is expected to:

• Lower EV production costs and improve adoption rates

• Create a competitive advantage for Ashok Leyland in commercial EVs

• Strengthen India’s position in energy storage systems (ESS) manufacturing

• Open doors for strategic export opportunities in the future

Industry Outlook

Ashok Leyland, already the world’s fourth-largest bus manufacturer, is aggressively diversifying its product range to include electric, CNG, LNG, and hydrogen-powered vehicles. This latest investment reinforces its commitment to sustainability, at a time when battery demand in India is projected to grow multi-fold by 2030, driven by electric mobility and renewable energy integration.

As global automakers and energy players compete for dominance in the battery supply chain, Ashok Leyland’s partnership with CALB signals India’s growing role as a battery manufacturing hub.

Key Takeaways

• Investment Size: ₹5,000 crore over 7–10 years

• Partnership: CALB Group (China) for battery technology and manufacturing

• Focus Areas: EV batteries, energy storage systems, R&D, localisation

• Strategic Impact: Strengthens India’s EV ecosystem and reduces import reliance

Bottom Line

Ashok Leyland’s ₹5,000 crore bet on batteries isn’t just a step towards electrification it’s a bold move to control the EV value chain, enhance domestic manufacturing, and position itself as a leader in clean transportation. This partnership with CALB could be a game-changer for India’s commercial vehicle and energy storage landscape.