Ashok Leyland-CALB Ink Rs 5,000 Cr Deal to Power India’s EV Battery Push

Commercial vehicle maker Ashok Leyland plans to invest more than Rs 5,000 crore over the next 7–10 years to localize battery manufacturing in India, strengthening its electric vehicle (EV) ambitions and catering to wider demand in automotive and energy storage sectors.

The Hinduja Group flagship has also signed a long-term exclusive partnership with China-based CALB Group, a global battery technology firm, to develop and produce next-generation batteries. The deal covers both automotive applications and energy storage systems.

The agreement was formalized by Ashok Leyland Managing Director & CEO Shenu Agarwal and CALB (HK) Co. CEO Jacky Liu, in the presence of Shom Hinduja, President of Alternative Energy and Sustainability Initiatives at the Hinduja Group.

“A localized battery supply chain is essential for India’s transition to clean mobility,” said Dheeraj Hinduja, Chairman of Ashok Leyland, calling the partnership “a significant step” towards sustainable transport solutions.

According to Agarwal, the new battery venture will initially target the automotive sector before expanding into areas such as energy storage. Plans also include setting up a Global Centre of Excellence to focus on innovations in battery materials, recycling, management systems, and advanced manufacturing.

Also Read: Ashok Leyland Share Price Drops - But Investors Just Got Richer In Shares | Republic World

The development underscores Ashok Leyland’s broader electrification push, which spans EVs, mobility-as-a-service, charging infrastructure, and vehicle financing.

Shares of Ashok Leyland were trading marginally higher at Rs 127 on the NSE in early afternoon trade following the announcement.

Ashok Leyland, India’s second-largest commercial vehicle manufacturer, has been diversifying its portfolio into electric, CNG, LNG, and hydrogen-based products. The tie-up with CALB — which operates multiple industrial bases in China and positions itself as a global energy technology leader — is expected to boost battery availability for both domestic needs and export opportunities.