Ashok Leyland has begun construction of a battery pack manufacturing plant near Chennai with an investment of about Rs.4 to 5 billion. The facility will produce battery systems for electric commercial vehicles, supporting India’s EV supply chain localization and reinforcing Tamil Nadu’s position as a manufacturing hub.
Ashok Leyland has initiated construction of a new battery pack manufacturing facility at Pillaipakkam near Chennai, marking a strategic step in the company’s electric mobility expansion. The project is expected to require an investment of approximately Rs.4 to 5 billion and forms part of investment commitments outlined in a memorandum of understanding signed with the Government of Tamil Nadu in September 2025, according to official disclosures. The facility will manufacture battery packs for electric commercial vehicles, an area gaining importance as fleet operators and logistics companies accelerate the transition toward zero-emission transport.
Localizing battery system production is expected to reduce supply chain dependence on imports and strengthen India’s domestic EV component ecosystem. Ashok Leyland, the flagship commercial vehicle manufacturer of the Hinduja Group, is one of India’s largest producers of trucks and buses with a growing focus on electric and alternative fuel mobility solutions. The company has established multiple manufacturing and technology operations across Tamil Nadu and has invested more than Rs 90 billion in the state over several decades.
For Tamil Nadu, the new facility reinforces the state’s strategy to attract investments in electric mobility and advanced manufacturing under its EV policy framework. Expanding domestic battery manufacturing capacity is considered critical for India’s commercial EV adoption, particularly in freight transport, urban logistics, and public transportation sectors. For suppliers, component manufacturers, and logistics operators, the project signals growing industrial activity around EV supply chains in southern India. Investors and industry participants are likely to monitor how localized battery production supports cost competitiveness and scaling of electric commercial vehicles in the domestic market.
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