Ashok Leyland Ties Up with China’s CALB to Strengthen Battery Tech Ambitions

Ashok Leyland Ltd., the Hinduja Group’s flagship and India’s second-largest manufacturer of trucks and buses, has entered into a long-term collaboration with China’s CALB Group Co., the world’s third-largest battery maker. The 20-year pact is designed to help the Indian automaker build critical expertise in lithium-ion battery technology.

Under the agreement, Ashok Leyland will initially import cells from CALB and assemble them into battery packs locally. “We are not really an EV player if 70% of the components come from outside,” said Shenu Agarwal, CEO of Ashok Leyland, stressing the company’s aim to eventually design and manufacture cells within India.

The Chennai-based firm plans to invest more than ₹50 billion ($563 million) over the next 7–10 years to establish next-generation battery manufacturing capabilities. These will serve not only the company’s commercial vehicles but also passenger cars, two-wheelers, three-wheelers, and grid-scale energy storage solutions.

Industry experts view the move as a potential test case for large Indian conglomerates. Reliance Industries and the JSW Group are also exploring Chinese collaborations to secure access to advanced battery technologies. “Given its scale and proximity, India is a beautiful destination for Chinese investment in batteries and EVs,” noted Komal Kareer, analyst at BloombergNEF.

For now, Ashok Leyland will focus on mastering pack-assembly processes, including heat management and software integration, with guidance from CALB. Agarwal emphasised that the company’s phased approach is intentional: “Process is even more important than technology in the beginning.”

The partnership comes as India is projected to become the world’s third-largest battery market by 2035, with demand expected to grow 19-fold, according to BloombergNEF estimates. Businesses like Adani Group and JSW have already initiated talks with Chinese giants such as BYD and Chery for EV technologies.

Ashok Leyland intends to begin by using the packs in its own vehicles but has plans to supply to other automakers and energy-storage developers within two to three years. The company will also set up a dedicated R&D centre in India, with CALB playing a limited but supportive role.

The ultimate goal: to design and develop lithium-ion cells domestically within five years. Agarwal believes this cautious, step-by-step strategy will place Ashok Leyland ahead of rivals. “Batteries are a black box today. This technology needs a lot of patience,” he said.