Ashok Leyland battery investment targets India’s EV scale-up

HINDUJA Group

Ashok Leyland battery investment signals a decisive push into cell manufacturing. The Ashok Leyland battery investment totals $567mn over 7–10 years. As a result, the Ashok Leyland battery investment aims to localize “next-generation batteries” for vehicles and energy storage.

Domestic batteries first, broader energy systems next

Ashok Leyland will prioritize automotive batteries for its own EVs. The company plans non-automotive batteries later for energy storage systems. However, it has not disclosed plant capacities or commissioning dates. A long-term deal with CALB supports technology and supply. Therefore, the strategy blends in-house demand with external expertise. India encourages local EV supply chains with a lower 15pc import duty. Policy runs for five years under the updated EV import rules.

Competitive landscape and India’s EV gap

India targets 30pc new-vehicle electrification by 2030. Yet EV penetration reached only 7.6pc at end-2024. Meanwhile, Tata’s Agratas plans a 20GWh plant at Sanand. It also plans 40GWh in the UK for export-linked demand. As a result, scale and cost remain the core challenges. Ashok Leyland’s investment helps reduce battery import exposure. It may also stabilize pack pricing for domestic fleets.

The Metalnomist Commentary

Ashok Leyland moves to secure cells as India’s EV curve steepens. Watch for capacity, chemistry choices, and localized supply of cathode, anode, and electrolyte. Execution speed versus peers like Agratas will determine cost leadership.