Key Highlights :

?5,000 crore investment over 7–10 years in setting up battery-producing and storage facilities.

Strategic partnership with Chinese battery behemoth CALB to spearhead forays in the EV battery domain.

Setting up of a Global Centre of Excellence for R&D, recycling, and advanced manufacturing.

Key Background :

Ashok Leyland's foray into the business of battery making is a strategic shift for the company in becoming a robust player in the EV market. ?5,000 crore in 7–10 years is an investment that demonstrates its long-term vision for the clean mobility and energy storage segment. The plan will cut dependence on third-party suppliers and build an in-house ecosystem to drive growth going forward.

The strategic partnership with CALB, the world's leading battery-producing companies, assists Ashok Leyland in accessing state-of-the-art technology and tested-out know-how. CALB, the world's leading battery manufacturer, the agreement is reported to provide a shot in the arm for Ashok Leyland's foray into the industry. On the back of Ashok Leyland's existing auto franchise and CALB's technical know-how, the partnership provides a strong foundation for business growth in India and overseas.

Apart from production, Ashok Leyland will develop an innovation capability with a Global Centre of Excellence for itself. The centre will lead the R&D in high-performance battery material, efficient recycling technology, intelligent BMS, and next-generation manufacturing technologies. Emphasis on innovation is one of the steps towards future-proofing the business against technology disruption in the EV and energy space.

Firstly, battery supply will be in-house in its EV business. The transition offers a seamless supply continuity, overcomes the cost barrier, and aligns with the vision of electrification. Going forward in the times to come, Ashok Leyland plans to enter non-automotive sectors like renewable energy storage and grid infrastructure, thus opening up more opportunities in the energy transformation journey.

Operationally, Ashok Leyland continues to report steady growth. The firm in August 2025 sold 15,239 vehicles, a 2% year-on-year increase. Medium and heavy commercial vehicles reported sparkling performance, rising 8%, while buses and light commercial vehicles also reported encouraging numbers. Such steady growth is an indicator of the robustness of its core business as it diversifies into newer segments.

The growth has been greeted with open arms by the share market. Ashok Leyland share price gained almost 6% in the last fortnight from the fortnight ago levels and embarked on a consistent uptrend journey in early September 2025. Both consistent sales performance as well as forward-thinking battery investment approach are driving investor hopes. These, among many others, are indicators of a company poised to add vintage strengths with the ingenuity of the future.

About the Author

Ryan Parker

Ryan Parker is a Managing Editor at Business Minds Media.