Mumbai: Ashok Leyland, one of India’s leading commercial vehicle manufacturers, announced a landmark investment of over ₹5,000 crore (approximately $571 million) to establish domestic electric vehicle (EV) battery production. The move is aimed at strengthening its EV business through its subsidiary, Switch Mobility, and supporting India’s growing focus on sustainable mobility and energy storage solutions.
The investment will be deployed over the next 7–10 years, targeting the development of high-capacity battery production units. These facilities will not only supply batteries for Ashok Leyland’s EV range but will also serve other automakers and energy storage applications. The company has joined hands with China’s CALB Group, a global leader in lithium-ion battery technology, to leverage advanced manufacturing expertise and scale production efficiently. CALB’s portfolio includes batteries for passenger vehicles, commercial vehicles, and stationary energy storage systems.
This strategic partnership positions Ashok Leyland alongside major Indian players like Tata Motors and Ola Electric, who have been actively pursuing localization of EV battery production. Currently, India relies heavily on imports of EV battery cells, primarily from China and South Korea. By producing batteries domestically, Ashok Leyland aims to significantly reduce costs, given that batteries account for up to 40% of an EV’s total cost, while also mitigating supply chain vulnerabilities.
The initiative is expected to strengthen the company’s competitiveness in the fast-growing Indian EV market and contribute to the nation’s broader goal of self-reliance in green mobility technologies. Analysts note that the move could accelerate adoption of electric commercial vehicles and bolster India’s ambitions to reduce carbon emissions while enhancing local manufacturing capabilities.
The announcement underscores Ashok Leyland’s commitment to innovation, sustainability, and strategic partnerships, marking a critical step in India’s journey toward building a robust domestic EV ecosystem.