Commercial vehicle maker Ashok Leyland, flagship of the Hinduja Group, said it has entered into a long-term exclusive partnership with CALB Group, one of the foremost battery technology companies in China, in the backdrop of improving bilateral relations and will invest over ₹5,000 crore over the next 7-10 years for battery infrastructure in India.
In a statement, the company said it will not only provide for Ashok Leyland & Switch’s own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector as well as in the energy storage sector.
“Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the Government’s vision. Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate the adoption of electric vehicles in India and reduce our dependence on fossil fuels,” Dheeraj Hinduja, Chairman, Ashok Leyland said.
“In the initial phase, the new battery business shall focus on the automotive sector, and then move to non-automotive areas as well, including energy storage systems. A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes,” Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said.
The partnership marks yet another milestone for Ashok Leyland and Hinduja Group’s ongoing commitment towards electrification, with investments across electric vehicles, electric mobility-as-a-service, charging equipment, vehicle financing and leasing, and other areas, the company said.
Regarding investments between the new partners, Ashok Leyland said, “There is no investment envisaged from CALB. “The investment quoted is phased up to the next 10 years,” it said.
The company said the intention is to start with battery packs with production in 2027. “Location of battery pack manufacturing in India is yet to be finalised and talks are going on with different state governments,” it said.
The scope of the relationship with CALB is the import of cells. “The subsequent actions will be finalised as we progress,” Ashok Leyland said.