Ashok Leyland to invest $565M to make next-gen batteries in India

Commercial vehicle manufacturer Ashok Leyland, the Indian flagship of the Hinduja Group, has entered into a long-term exclusive partnership with China’s CALB Group to make next-generation batteries. As part of the agreement, the Indian automaker will invest over ₹50 billion (about USD 565 million) over the next seven to ten years in development and manufacturing of next-generation batteries, for both automotive and non-automotive applications, including energy storage systems.

This reinforces Ashok Leyland’s ambition to be a leading player in creating an electrification ecosystem in the country, the company said in a media release. 

Ashok Leyland will invest in battery localization in India. This will not only provide for its own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector as well as in the energy storage sector, the company said. 

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

“In the initial phase, the new battery business shall focus on automotive sector, and then move to non-automotive areas as well, including energy storage systems,” Shenu Agarwal, Managing Director and CEO, Ashok Leyland, said. “A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes.” 

Established in 1948, Ashok Leyland is a USD 5.52 billion company with a footprint that extends across 50 countries.