Ashok Leyland, India’s second-largest commercial vehicle manufacturer, has signed an agreement with CALB to localise battery production. The company intends to expand the scope of the deal beyond automotive applications.
Taking advantage of improved trade relations with China, Ashok Leyland has entered into a long-term partnership with CALB to develop and manufacture next-generation batteries in India. The collaboration with China’s third-largest battery maker is expected to strengthen the supply chain and improve the competitiveness of its electric vehicles. Battery production is expected to start in 2027.
The Indian CV maker sells EVs under the Ashok Leyland brand as well as Switch Mobility and plans to use the partnership with CALB across both. At a later stage, the company also aims to supply localised batteries to other vehicle manufacturers, energy storage providers and non-automotive industries. Ashok Leyland also plans to establish a Global Centre of Excellence to focus on battery materials, recycling, battery management systems and advanced manufacturing processes.
Ashok Leyland estimates its localisation programme will require investments of more than 50 billion rupees (approx. 487 million euros) over the next seven to ten years. CALB will not invest directly under this partnership, which should help avoid regulatory complications. In the first phase, Ashok Leyland plans to spend 3–6 billion rupees (approx. 29–58 million euros) by September 2026 to begin producing LFP battery packs. Later phases will include cell production and localisation of additional components.
It is not yet clear where the factory will be built, Ashok Leyland emphasised in a follow-up press release entitled “Further details and clarifications”. It said that “talks ongoing with different State Governments.”
“Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with Government’s vision,” said Dheeraj Hinduja, Chairman, Ashok Leyland. “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.”
ashokleyland.com, autocarpro.in, ashokleyland.com (clarifications)
