Hinduja Group’s Ashok Leyland Plans ₹50 Billion Investment in Next-Gen Batteries with CALB

26 Sep 2025 , 01:04 PM

Ashok Leyland Ltd, the flagship company of the Hinduja Group, has partnered with China’s CALB Group Co, the country’s third-largest battery maker, to gradually master lithium-ion cell technology.

The Chennai-based commercial vehicle maker, India’s second-largest truck and bus manufacturer, signed a 20-year agreement with CALB earlier this month. Initially, Ashok Leyland will import cells from CALB and focus on assembling them into battery packs domestically.

CEO Shenu Agarwal stated that the company aims to eventually design and manufacture lithium-ion batteries in India, building domestic capability in the rapidly growing EV and energy storage market.

The collaboration could set a precedent for other large Indian conglomerates pursuing tie-ups with Chinese firms for battery technology, including Reliance Industries Ltd. and the JSW Group.

Agarwal highlighted the strategic challenge: “We are not really an EV player if 70% of the components come from outside.” The company plans to forge additional partnerships to master the full battery value chain.

Over the next 7–10 years, Ashok Leyland intends to invest over ₹50 billion ($563 million) to manufacture next-generation batteries for vehicles and grid-scale storage, with CALB providing technical guidance.

Initially, CALB will supply the cells while Ashok Leyland develops expertise in pack assembly, heat management, and software integration, under the guidance of its Chinese partner. Agarwal emphasized a cautious approach, noting that process optimization is as critical as technology in the early stages.

The partnership is being structured carefully, adhering strictly to Indian laws, with detailed phases yet to be finalized. India is projected to become the third-largest battery market globally, with demand expected to grow 19 times by 2035, according to BloombergNEF.

Several Indian conglomerates, including Gautam Adani’s group and Sajjan Jindal’s JSW Group, are exploring partnerships with Chinese battery and EV companies to strengthen local manufacturing capabilities.

Ashok Leyland plans to initially produce battery packs for its own vehicles but aims to supply other EV segments, including two-wheelers, three-wheelers, and grid storage, within two to three years.

The company also intends to establish an India-based R&D hub focusing on battery innovation, packaging, and materials science, with CALB playing a limited but supportive role.

The ultimate goal is to design and produce lithium-ion cells in India, a milestone expected to take at least five years, building capability patiently ahead of market growth.

Agarwal emphasized the need for phased learning: “Batteries are a black box today. No one currently understands batteries in India. This technology needs a lot of patience.”

For feedback and suggestions, write to us at [e-mail]