Ashok Leyland to invest Rs 5,000 cr in battery business, signs deal with China's CALB

The investment will focus on battery localisation in India.

Ashok Leyland, the flagship Hinduja Group firm and a leading commercial vehicle (CV) maker in India, will invest over Rs 5,000 crore in the battery ecosystem over the next 7-10 years in partnership with China's CALB Group.

The move is aimed at supporting both automotive and non-automotive applications, including energy storage systems.

Ashok Leyland has signed a long-term exclusive partnership with CALB Group, which specialises in the research, production, sales and market application development of lithium batteries, battery management systems and related integrated products, and lithium battery materials.

The investment will focus on battery localisation in India. While the immediate priority will be to support Ashok Leyland and Switch Mobility's electric vehicle (EV) portfolio, the plan also includes catering to non-captive demand across the auto sector and the wider energy storage space.

"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, 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," he added.

According to Ashok Leyland MD and CEO Shenu Agarwal, the new business will initially target the automotive sector before expanding to energy storage and other areas. A Global Centre of Excellence is also planned to drive R&D in areas such as battery materials, recycling, management systems, and advanced manufacturing.

This battery investment comes on top of Hinduja Group's other clean mobility initiatives, including EVs, electric mobility-as-a-service, charging infrastructure, and vehicle financing.

Ashok Leyland is India’s second-largest CV manufacturer and the fourth-largest bus maker globally. The company has been diversifying into electric, CNG, LNG, and hydrogen-powered vehicles as part of its broader sustainability roadmap.