Ashok Leyland To Put Rs 5,000 crore into EV battery production
By Jony Shekhawat | Published Date : September 05, 2025
Ashok Leyland to invest ₹5,000 crore in EV battery manufacturing to boost electric mobility.
Ashok Leyland, one of India’s biggest bus and truck manufacturers, has announced a large push into electric mobility. The company will spend ₹5,000 crore on setting up battery production facilities in India. Company officials said the money will go into new plants, research work and supply chains. Experts believe the step could give Ashok Leyland an edge in the commercial EV market and also support the government’s push to make India less dependent on imports. But Ashok Leyland seems confident. Company officials said India’s demand for electric buses and trucks is only going to rise, and the investment is a long-term bet on that growth.
Ashok Leyland–CALB Tie-Up for EV Batteries
Table Of Contents
| 1. Ashok Leyland–CALB Tie-Up for EV Batteries |
| 2. A shift towards electric |
| 3. Local Battery Production to Cut EV Costs |
| 4. Impact on Buses and Trucks |
| 5. Wider benefits |
| 6. Government Support |
| 7. Conclusion |
Ashok Leyland has partnered with China’s CALB Group to set up world-class EV battery manufacturing in India, bringing global expertise, advanced technology, and safety standards—while also boosting local skills as India-China relations show signs of improvement.
A shift towards electric
The move comes as more automakers in India are preparing for a future where diesel and petrol will slowly give way to cleaner options. The government has also been offering subsidies and policy support to push the EV market.
Ashok Leyland already sells electric buses through its unit Switch Mobility. With this new investment, the company wants to control one of the most important parts of an EV — the battery.
Local Battery Production to Cut EV Costs
Batteries make up almost one-third of the cost of an electric vehicle. They also decide how far the vehicle can go on a single charge and how often it needs servicing. At the moment, India imports most of its batteries, mainly from China. By producing them locally, Ashok Leyland hopes to reduce costs and also cut dependence on imports.
A company spokesperson said the plan is to set up factories, improve research, and create a local supply chain for key battery materials. The first focus will be on lithium-ion batteries, but new technologies could be added later.
Impact on Buses and Trucks
For Ashok Leyland, the main area of growth in EVs is buses and commercial vehicles. Several state governments are already testing their electric buses in city fleets. If the company can bring down costs with local batteries, more operators may switch to electric.
One transport operator at a recent demo run said, “The big worry is the price and running cost. If companies can cut battery costs, we will be ready to try electric buses on a larger scale.”
Wider benefits
The investment could also open doors for smaller companies in the EV supply chain — from parts and components to charging systems. Industry watchers believe a big player like Ashok Leyland entering battery production will push other companies to move faster as well.
Analysts also say it could create jobs in manufacturing and research. “This is not just about one company. It could lift the whole EV ecosystem in India,” an auto analyst said.
Government Support
Government programmes like FAME-II and the PLI scheme are meant to push battery and EV manufacturing in India. Ashok Leyland’s Rs 5,000 crore investment lines up with this push. The government has been stressing the need to cut imports and build local capacity. Officials say India should become a hub for clean mobility in the next decade. Setting up battery plants inside the country is seen as a key step.
Conclusion
By putting Rs 5,000 crore into EV battery production, Ashok Leyland has sent a strong signal about where it sees the future. The step could help cut costs, reduce import dependence, and give a big push to India’s electric truck plans.
If it works out as planned, the move could change not just Ashok Leyland’s future but also the shape of the Indian commercial vehicle market.
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Frequently Asked Questions on Electric Ashok Leyland Trucks
Q1. Does Ashok Leyland make electric trucks and buses?
Ans. Yes, Ashok Leyland offers a range of electric trucks and buses under its EV arm, Switch Mobility, designed for urban and intercity transport.
Q2. What is the range of Ashok Leyland’s electric vehicles?
Ans. Most electric buses and trucks have a range of 120–200 km per charge, depending on the model and usage.
Q3. Where are Ashok Leyland’s EVs manufactured?
Ans. Ashok Leyland manufactures its electric vehicles in India and the UK, with plans to expand local production through partnerships.
Q4. Are these EVs suitable for Indian roads and conditions?
Ans. Yes, they are built for Indian road conditions, offering strong suspension, durability, and efficient performance in urban traffic.
Q5. What are the key benefits of Ashok Leyland electric buses and trucks?
Ans. They provide zero emissions, lower running costs, quieter operation, and help reduce dependence on imported fuel.
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About the Author
Jony Shekhawat
Jony Shekhawat is a skilled content writer at TrucksBuses.com, one of India’s top platforms for commercial vehicle news and reviews. With roots in social work and a keen interest in the logistics and mobility space, Jony crafts content that is both insightful and easy to understand. He specializes in breaking down complex commercial vehicle trends, helping readers make informed decisions. His writing not only informs but also aims to support the growth of India's transport community through knowledge and awareness.