Ashok Leyland Signs MoU with PT Pindad for Electric Bus and Defence Vehicle Projects

Indian bus and commercial vehicle manufacturer Ashok Leyland has signed a strategic Memorandum of Understanding (MoU) with Indonesian state-owned defence and industrial company PT Pindad to jointly work on the development of electric buses and defence vehicles. 

The MoU was signed on 4 February 2026 at the headquarters of PT Pindad in Bandung, in the presence of key representatives from both the companies. The MoU will help create a platform to tap into the existing strengths of Ashok Leyland in electric vehicle platforms and defence mobility solutions and the engineering capabilities of PT Pindad.

As per the MoU, the two companies have planned to work together on the development of electric bus platforms that are suitable for the Indonesian climate. This is in line with the Indonesian government’s initiative to introduce energy-efficient and environmentally sustainable public transportation systems in the country, with electric buses being identified as a key component in this initiative, particularly in urban areas.

However, there are also opportunities in the defence sector. The MoU also covers the design and engineering of defence vehicles that are intended to meet the needs of Indonesia’s national security. Both parties have made it clear that there is a need to go beyond the purchase of defence technology and to localize it.

According to the official statements, the strength of this partnership is that it brings together two different sets of strengths. The first is the experience of Ashok Leyland in the sector of commercial and electric mobility, which is further reinforced by its subsidiary Switch Mobility, and the second is the established presence of Pindad in the Indonesian defence and manufacturing sector. This partnership is structured in such a way that the outcome meets the local conditions that are prevalent in Indonesia.

It has been made clear by both sides that the MoU is not a sales contract but a strategic partnership that is expected to provide the foundation for future product development and manufacturing initiatives. There have been no financial disclosures or production schedules announced as yet, but the MoU is an indication of the increasing collaboration between India and ASEAN countries in the automotive and defense industries.

The MoU between Ashok Leyland and PT Pindad is a strategic step towards increased bilateral industrial engagement with a special focus on sustainable transportation and enhanced defense capabilities, specifically in the case of Indonesia.

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