Ashok Leyland, the flagship company of the Hinduja Group and India’s second-largest commercial vehicle manufacturer, has entered into a strategic partnership with China’s CALB Group, one of the world’s leading battery manufacturers. The collaboration marks a significant milestone in India’s electric mobility journey, as the two companies aim to establish a localised lithium-ion battery manufacturing ecosystem worth nearly ₹5,000 crore over the next 7–10 years.
Strategic Objective: Building India’s EV Battery Ecosystem
The joint venture will focus on setting up domestic giga-scale battery manufacturing facilities, which will not only meet Ashok Leyland’s in-house requirements for electric trucks and buses but also cater to the wider automotive and energy storage markets. This diversification ensures that the partnership goes beyond captive consumption and addresses India’s urgent need for a sustainable EV supply chain.
Reducing Import Dependency & Strengthening Energy Security
India currently imports a large share of its EV battery components, especially cells. Through this partnership, Ashok Leyland and CALB aim to localise production, thereby reducing dependency on foreign supply chains and aligning with the government’s ‘Make in India’ and Atmanirbhar Bharat initiatives. The move is also expected to bring in advanced technology transfer, paving the way for cost-competitive EV batteries.
Global Centre of Excellence Planned
A key highlight of the collaboration is the establishment of a Global Centre of Excellence (CoE) in India. This CoE will focus on:
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Cell chemistry innovation and development of next-gen lithium-ion and solid-state batteries
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Battery recycling and second-life applications for sustainability
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Battery management systems (BMS) to enhance safety and efficiency
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Energy storage applications, supporting renewable power integration and industrial needs
This CoE is expected to position India as a global hub for advanced battery R&D, with a strong emphasis on environmental sustainability.
Leadership Speaks
Dheeraj Hinduja, Chairman of Ashok Leyland, emphasised that the partnership reflects the company’s commitment to India’s clean mobility transition:
“This collaboration with CALB will accelerate our journey toward electrification while supporting India’s energy independence. It is a step toward building a world-class battery ecosystem right here in India.”
Shenu Agarwal, MD & CEO of Ashok Leyland, highlighted the project’s scalability:
“While our immediate focus is to meet the needs of Ashok Leyland and Switch Mobility, the long-term plan is to expand into battery supply for passenger vehicles, industrial applications, and renewable energy storage systems.”
Boost to Indian EV Market & Economy
Industry experts believe the move will not only reduce battery costs for Indian EV manufacturers but also create thousands of direct and indirect jobs in manufacturing, R&D, and allied industries. By localising production, the partnership will also enhance India’s competitiveness in the global EV supply chain.
Looking Ahead
With CALB’s technical expertise and Ashok Leyland’s strong domestic presence, the partnership is expected to accelerate EV adoption in India, support the government’s target of 500 GW of non-fossil capacity by 2030, and contribute significantly to the net-zero emissions goal by 2070.