Ashok Leyland Partners With China’s CALB For Battery Manufacturing, To Invest ₹5,000 Crore

Published on 1 Sept, 2025, 9:26 AM IST
Updated on 1 Sept, 2025, 11:26 AM IST
Acko Drive Team
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This partnership will help Ashok Leyland cater to demand across the automotive and energy storage sectors.

Commercial vehicle major Ashok Leyland plans to invest in the development and manufacturing of next-generation batteries for both automotive and non-automotive applications, including energy storage systems. Against the backdrop of improving bilateral relations, Ashok Leyland has entered into a long-term exclusive partnership with CALB (China Aviation Lithium Battery Technology) Group, a major battery technology company, headquartered in Changzhou, China.

Ashok Leyland will invest in battery localisation in India. This will not only provide for Ashok Leyland & Switch’s own electric vehicle portfolio but also cater to non-captive demand across the entire automotive as well as energy storage sectors. This business would entail investments over ₹5,000 Cr over the next 7-10 years.

The agreements were signed by Shenu Agarwal, Managing Director & CEO, Ashok Leyland and Jacky Liu, CEO, CALB (HK) Co. Ltd, in the presence of Mr. Shom Hinduja, President, Alternative Energy and Sustainability Initiatives, Hinduja Group.

Dheeraj Hinduja, Chairman, Ashok Leyland said, “Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the Government's vision. 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.”

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, “In the initial phase, the new battery business shall focus on the automotive sector, and then move to non-automotive areas as well, including energy storage systems. 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.”

This partnership is also a reflection of Ashok Leyland and Hinduja Group’s larger electrification strategy, which includes investments across Electric Vehicles, Electric Mobility-as-a-Service, Charging Equipment, Vehicle Financing and Leasing, and other areas.

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