Ashok Leyland to invest ₹5000 Cr in India: In a landmark step for India’s electric vehicle (EV) ecosystem, Ashok Leyland, the flagship company of the Hinduja Group, has partnered with China’s CALB Group, one of the world’s leading battery technology firms. The collaboration marks a significant milestone in India’s push toward localized battery production and self-reliance in clean energy solutions. Over the next 7–10 years, Ashok Leyland will invest more than ₹5,000 crore (approximately $571 million) in battery manufacturing facilities within India.
Why This Partnership Matters?
Currently, batteries account for nearly 30–50% of an EV’s overall cost. By localizing production, Ashok Leyland aims to reduce reliance on imports, lower costs, and enhance profitability. This partnership will not only serve Ashok Leyland and its EV arm, Switch Mobility, but also support other automotive manufacturers and the growing energy storage sector. The move aligns perfectly with India’s national objective of accelerating EV adoption and advancing sustainable mobility.
Phased Investment Strategy
The investment will be executed in a structured, phased manner:
- Initial Phase (1–2 years): Approximately ₹300–600 crore will be invested to initiate the manufacturing of Lithium Iron Phosphate (LFP) battery packs. These are estimated to meet a demand of 4–6 GWh over the next 4–5 years.
- Long-Term Phase (7–10 years): The majority of the investment will be allocated to localizing the production of battery cells and advanced components. Future expansions may also explore new chemistries as technology evolves.
This structured approach ensures both immediate results and long-term scalability.
Market Reach: Captive and External
The initial production will focus on meeting internal demand from Ashok Leyland and Switch Mobility, which already has a substantial electric bus order book. In the long term, the company plans to expand supply to other OEMs, covering passenger vehicles, two-wheelers, and three-wheelers. Beyond the automotive sector, the venture also aims to penetrate the fast-growing energy storage systems market, further diversifying its impact.
Technology and R&D Initiatives
The choice of LFP technology underscores the focus on safety, thermal stability, longer lifecycle, and cost-efficiency—features especially suited for commercial vehicles. Globally, LFP batteries have seen rising adoption, making them a future-proof choice.
To drive innovation, Ashok Leyland will establish a Global Centre of Excellence in India. This hub will focus on research in battery materials, recycling, Battery Management Systems (BMS), and advanced manufacturing processes. It will also help in building intellectual property and technological know-how within the country.
Leadership Insights
- Dheeraj Hinduja, Chairman of Ashok Leyland, highlighted that the company is committed to shaping sustainable mobility and reducing dependence on fossil fuels, fully aligned with the government’s clean energy vision.
- Shenu Agarwal, MD & CEO, explained that the initial focus will be on automotive batteries, followed by expansion into energy storage systems. He also emphasized the importance of the new R&D centre in developing advanced solutions.
This initiative complements the Hinduja Group’s broader electrification strategy, which includes charging infrastructure, green mobility solutions, and vehicle financing.
Outlook and Strategic Importance
The announcement has already boosted investor confidence, with Ashok Leyland’s stock seeing a positive market response. Analysts view this as a balanced and forward-looking strategy—one that blends innovation, market growth, and technological independence.
By anchoring manufacturing and R&D within India, Ashok Leyland is positioning itself not just as a commercial vehicle leader, but as a key player in India’s EV and energy storage future.
Conclusion
Ashok Leyland’s ₹5,000 crore investment with CALB is more than just a business collaboration—it is a bold step towards building a localized, self-reliant battery ecosystem in India. This move strengthens the nation’s EV supply chain, accelerates the shift to sustainable mobility, and sets the stage for India to emerge as a global hub for advanced battery technology.
Related Articles:-
