Ashok Leyland & CALB Ink ₹5,000 Crore 20-Year Deal to Localize EV Battery Manufacturing in India

Greaves Electric Mobility


Ashok Leyland, India’s second-largest commercial vehicle manufacturer and flagship of the Hinduja Group, has announced a long-term exclusive partnership with China’s CALB Group, the world’s third-largest battery maker. The ₹5,000 crore collaboration is designed to localize advanced lithium-ion battery technology and strengthen India’s domestic EV supply chain.


Strategic Investment & Vision

The partnership reflects Ashok Leyland’s commitment to becoming a core player in India’s electrification efforts. Key highlights include:

  • ₹5,000 crore investment over 7–10 years for R&D centers and battery manufacturing
  • Phased expansion, initially supplying Ashok Leyland and Switch Mobility’s EV fleet, later serving broader automotive and energy storage markets
  • Focus on sustainable, localized battery production, reducing dependence on imports

Phased Approach to Technology Mastery

The 20-year roadmap emphasizes process excellence over rapid scale-up:

  • Phase 1 – Import & Learn: CALB supplies lithium-ion cells; Ashok Leyland assembles battery packs domestically, gaining expertise in thermal management, software integration, and packaging
  • Phase 2 – R&D Hubs: Establishment of a Global Centre of Excellence to innovate in battery materials, recycling, BMS, and advanced manufacturing
  • Long-Term Goal: Full domestic lithium-ion cell production within five years or more

Industry Impact & National Significance

  • Bridges the technology gap in India’s EV battery sector, addressing the “black box” challenge in lithium-ion technology
  • Accelerates EV adoption across commercial and passenger segments
  • Supports India’s goal of a sustainable and green economy, positioning the country as a global EV and energy storage hub

Ashok Leyland’s strategic partnership with CALB underscores the company’s long-term vision for electrification, signaling a transformative shift in India’s EV ecosystem.

ELECTRIFYING INDIA’S LAST MILE