NEW DELHI: Commercial vehicle manufacturer Ashok Leyland is partnering with Chinese battery giant CALB Group to invest in the development and manufacturing of next-generation batteries, for both automotive and non-automotive applications, including energy storage systems. This business would entail investments of over Rs 5000 crore over the next 7-10 years, said a company statement.
The Hinduja Group flagship company has entered into a long-term exclusive partnership with CALB Group as the relationship between India and China improves after years of hostility. Chinese President Xi Jinping during the bilateral meeting with Prime Minister Narendra Modi said that it is the right choice for India and China to be friends.
PM Modi on Monday said that he concluded a “productive” visit to China during which he attended the Shanghai Cooperation Organisation (SCO) summit.
Ashok Leyland said it will invest in battery localisation in India. This will not only provide for Ashok Leyland & Switch’s own electric vehicle portfolio but would also cater to non-captive demand in the entire automotive sector as well as in the energy storage sector, it added.
Dheeraj Hinduja, Chairman, Ashok Leyland said, “Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate adoption of electric vehicles in India and reduce our dependence on fossil fuels,” in the statement.
Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added in the company statement, “In the initial phase, the new battery business shall focus on 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.”