Ashok Leyland to invest ₹5,000 crore in battery localisation with CALB

Ashok Leyland is preparing to take a big bet on the building blocks of electrification. The Hinduja Group flagship announced it will invest ₹5,000 crore over the next 7–10 years to set up a localised battery business in India. The plan spans both automotive and non-automotive applications, with energy storage systems also on the agenda.

In doing so, the country’s second-largest commercial vehicle maker is moving upstream into one of the most expensive and supply-constrained parts of the EV value chain. The company has tied up with CALB Group of China in an exclusive long-term partnership to bring technology and scale to the venture.

The policy backdrop

India has made no secret of its ambition to build self-reliance in clean mobility. Yet, when it comes to batteries, the bulk of advanced chemistries and cells still come from overseas. Ashok Leyland’s move reflects a growing urgency among automakers to secure access to these components as the transition to electric buses and trucks accelerates.

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

Beyond buses and trucks

Initially, the new battery arm will focus on automotive applications, supplying both Ashok Leyland and its EV subsidiary Switch Mobility. Over time, the scope will widen to non-automotive areas, including energy storage systems, a sector likely to see rapid growth as India integrates more renewable power into the grid.

“We will create a Global Centre of Excellence to foster research in battery materials, recycling, management systems and advanced manufacturing," said Shenu Agarwal, MD & CEO. “The aim is not just to make batteries, but to build long-term innovation capacity in India."

A bigger electrification play

For Ashok Leyland, batteries are just one piece of the larger puzzle. The company has already forayed into electric buses, trucks and alternative fuels like CNG, LNG and hydrogen. It is also looking beyond manufacturing, investing in charging equipment, financing models and mobility-as-a-service.

“This partnership is a milestone in our ongoing commitment towards electrification," added Shom Hinduja, President of Alternative Energy and Sustainability Initiatives, Hinduja Group. “We are focused on creating a holistic ecosystem that spans vehicles, energy and services."

The road ahead

The ₹5,000 crore plan underlines both the opportunities and risks of localisation. Battery manufacturing is capital-intensive, technologically fast-moving, and reliant on supply chains for critical minerals that India does not yet control. As the commercial vehicle market edges towards a greener future, Ashok Leyland’s battery bet may prove to be a defining one, provided India can build the ecosystem to match.

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