Ashok Leyland has started construction of a new battery pack manufacturing facility in southern India, as it moves to strengthen its position in electric mobility and energy storage.
The plant will be located at SIPCOT Pillaipakkam Industrial Park near Chennai and represents an initial investment of 4–5 billion rupees (approximately €37–46 million). The project forms part of a broader 75-billion-rupee investment plan announced for the state of Tamil Nadu.
The facility will produce battery packs for both electric vehicles and battery energy storage systems (BESS). Initial production will rely on lithium iron phosphate (LFP) cells supplied by CALB Group, with the company confirming that the supplier will not take an equity stake in the project. According to Autocar Professional, the packs will use LFP chemistry.
Ashok Leyland is targeting a start of production in 2027, though a detailed timeline has not yet been disclosed. The company said the locally produced battery packs will be used in its own electric vehicles and supplied to third-party manufacturers and energy storage providers.
The initiative supports the company’s broader localisation strategy, which includes plans to invest more than 50 billion rupees in battery pack development over the next decade.
Ashok Leyland markets electric vehicles through its subsidiary Switch Mobility, which has reported growing sales. In the first nine months of FY2026, Switch Mobility sold 850 electric buses and around 1,200 electric light commercial vehicles, with an order book of 1,350 units, according to company disclosures.
Dheeraj Hinduja said the new facility is a key milestone. “Ashok Leyland, along with its subsidiary, Switch Mobility, have already developed a vast range of electric Commercial Vehicles, and have taken a lead position in the EV market. The groundbreaking of the new battery pack manufacturing facility marks an important step in our electric mobility journey and reinforces our commitment to building a strong domestic EV ecosystem.”