Mumbai: Ashok Leyland, one of India’s leading commercial vehicle manufacturers, has announced a historic 20-year collaboration with China’s CALB (China Aviation Lithium Battery) to build a robust electric vehicle (EV) battery ecosystem in India. The deal, formalized on 25 September 2025, covers lithium-ion battery pack assembly with a long-term plan to achieve full cell manufacturing within the next five years.
The partnership is a significant milestone in India’s push for clean mobility and local EV infrastructure. Ashok Leyland aims to reduce dependency on imported batteries and strengthen its domestic supply chain. Initial operations will focus on battery pack assembly for commercial vehicles, with technology transfer and capacity scaling forming the backbone of future cell production.
“This collaboration is aligned with our vision to drive sustainable transportation and provide cutting-edge solutions for India’s growing EV market,” said a senior Ashok Leyland executive. The company has already outlined an investment plan of approximately ₹5,000 crore for setting up advanced manufacturing facilities and infrastructure over the coming years.
The Indian EV market, particularly commercial vehicles, has been witnessing rapid growth, driven by government incentives, GST reforms, and increased adoption of clean energy solutions. Analysts note that having a domestic battery ecosystem will not only make EVs more affordable but also enhance reliability and service capabilities for fleet operators.
Earlier, on 1 September 2025, Ashok Leyland had announced the exclusive partnership with CALB and the investment plan, laying the groundwork for the current comprehensive 20-year agreement. The collaboration also emphasizes research and development, aiming to adapt CALB’s advanced battery technology to India’s climate and operational conditions.
With the new agreement, India joins a growing list of countries aiming to reduce EV battery imports while building local expertise. For Ashok Leyland, the partnership is expected to position the company as a leader in commercial EVs, offering a complete ecosystem from battery technology to vehicle deployment.
Industry experts suggest that such initiatives will accelerate India’s EV adoption curve and enhance its competitiveness in the global EV market, reinforcing the government’s vision of a cleaner, sustainable transport sector.