Hinduja Flagship Ashok Leyland Bets on Chinese Partnership to Power India’s EV Battery Future

Ashok Leyland Ltd., the Hinduja Group’s flagship and India’s second-largest commercial vehicle maker, has struck a long-term partnership with China’s CALB Group to build domestic capabilities in lithium-ion batteries. This tie-up, spanning 20 years, is central to its ambition of gradually mastering cell technology and reducing dependence on imports, according to the company.

Initially, Ashok Leyland will import cells from CALB and assemble them into battery packs in India before moving towards localized design and manufacturing.

“We are not really an EV player if 70% of the components come from outside,” said Shenu Agarwal, Managing Director & CEO of Ashok Leyland, told Bloomberg, adding, “Our approach is deliberately cautious. Even leading Chinese manufacturers face efficiency challenges, so process is more important than technology in the beginning.”

The Chennai-based automaker plans to invest more than Rs. 5,000 crore (approx. $563 million) over the next seven to ten years in developing next-generation batteries for both automotive and non-automotive uses, including large-scale energy storage systems. The company will first use these packs for its own vehicles but expects to expand supply to other automakers and industries within a few years.

Dheeraj Hinduja, Chairman of Ashok Leyland, underscored the partnership’s strategic importance. “Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the Government’s vision. Our collaboration with CALB is a significant step towards creating a localized battery supply chain to accelerate EV adoption and reduce reliance on fossil fuels.”

Also Read: Ashok Leyland-CALB Ink Rs 5,000 Cr Deal to Power India’s EV Battery Push | Republic World

The agreement was signed by Agarwal and CALB (HK) CEO Jacky Liu in the presence of Shom Hinduja, President of Alternative Energy and Sustainability Initiatives, Hinduja Group.

As part of the partnership, Ashok Leyland will establish a Global Centre of Excellence in India to focus on battery innovation, covering materials science, recycling, management systems, and advanced manufacturing. CALB will play a supportive role in this R&D push.

Industry analysts see the move as timely. “India’s growing EV market and rising demand for energy storage make it an especially attractive destination for Chinese auto and battery players,” stated an analyst at BloombergNEF.

The company ultimately aims to design and develop lithium-ion cells domestically within five years. “Batteries are a black box today. No one in India fully understands them yet,” Agarwal told the aforementioned newswire agency, adding, “This technology needs patience, and we are preparing ourselves for the tipping point.”