Ashok Leyland has signed a memorandum of understanding (MoU) with Indonesia’s state-owned defence manufacturer PT Pindad to jointly develop electric buses and defence vehicles for the Indonesian market, reflecting a growing push by Indian automakers to participate in government-led mobility and defence programmes in Southeast Asia.

The agreement was signed in Bandung on February 4 and sets out a framework for collaboration on product development and manufacturing aligned with Indonesia’s public transport and national security priorities. The companies did not disclose financial details or a timeline for commercial production.

Focus on localised electric mobility solutions

Under the MoU, Ashok Leyland and PT Pindad will work on electric bus platforms tailored to Indonesia’s operating conditions, as the country accelerates its shift toward energy-efficient public transport. Indonesia has identified electric buses as a key lever to reduce urban emissions while building domestic manufacturing capabilities through partnerships with overseas firms.

Ashok Leyland’s electric bus expertise is anchored in Switch Mobility, its subsidiary focused on electric commercial vehicles, which has developed platforms for multiple global markets.

Defence collaboration aligned with procurement priorities

In parallel, the partnership will explore joint development of defence vehicles to support Indonesia’s efforts to modernise military logistics and equipment. Indonesia has increasingly emphasised localisation and technology transfer in defence procurement, favouring collaborative development over direct imports.

PT Pindad plays a central role in the country’s defence manufacturing ecosystem, producing armoured vehicles and tactical platforms for domestic use.

Company sees partnership as market-specific

Amandeep Singh, President – International Operations, Defence, LCV & PSB at Ashok Leyland, said the collaboration would focus on Indonesia-specific requirements. “Our partnership with Pindad allows us to jointly develop products uniquely suited to Indonesia’s terrain, infrastructure, and operational needs,” he said.

Ashok Leyland, part of the Hinduja Group, has been expanding its international presence across commercial vehicles, electric mobility and defence platforms, with a sharper focus on institutional and public-sector customers.