Unfazed by China Export Curbs, Ashok Leyland Moving Ahead with Local Battery Manufacturing Plans

Despite mounting geopolitical uncertainties affecting EV and lithium battery supply chains as well as international partnerships, Hinduja Group-backed Ashok Leyland is proceeding with its local battery manufacturing roadmap. The company sees current disruptions, including recent export controls by China on a range of critical materials and technologies, as temporary tactical challenges rather than strategic obstacles, a top company executive told ACKO Drive on Wednesday while announcing its quarterly results. 

Asked if Chinese export restrictions are a challenge, Shenu Agarwal, MD & CEO, Ashok Leyland said: "No, not at all. A lot of work is happening geopolitically, across the world. It is not sustainable. It is more temporary. I think these are more tactics than long-term strategies. While we have to deal with these short-term tactics in different ways, but I don't think it will affect our long-term strategic plans at all."

Also read: Ashok Leyland Reports ₹771 Crore Q2 FY26 Net Profit with Marginal Growth

Ashok Leyland's battery manufacturing collaboration with Chinese firm CALB Group continues to advance through its initial phase, with key decisions around plant location and equipment procurement currently under evaluation. This suggests that the country's EV ambitions extend beyond short-term political considerations.

"Right now, we are evaluating a few things, which include the location of the plant, what kind of machinery and equipment we would like to bring in," said KM Balaji, CFO, Ashok Leyland.

Earlier in September, Ashok Leyland, Hinduja Group's Indian flagship enterprise and a key commercial vehicle producer, announced plans to invest in the development and manufacturing of next-generation battery technology for automotive and non-automotive apps, including energy storage systems. The new business will see investments of over ₹5,000 crore in the next 7-10 years.

Ashok Leyland had also said this production capacity will serve not only its own subsidiary Switch's proprietary EV range, but will also address non-captive demand throughout the broader automotive sector and energy storage industry.