Ashok Leyland breaks ground for ₹500 Crore EV battery pack facility in Tamil Nadu
12th March 2026
Indian commercial vehicle manufacturer Ashok Leyland has taken a major step toward strengthening its electric mobility strategy by breaking ground on a new battery pack manufacturing facility in Pillaipakkam. The upcoming plant, located near Chennai, will involve an investment of around ₹400–500 crore and is expected to support the growing demand for battery systems used in electric commercial vehicles. The project forms part of broader investments planned by the Hinduja Group, the parent group of Ashok Leyland, following a memorandum of understanding signed with the Tamil Nadu government in 2025.
The new greenfield facility will focus on manufacturing advanced battery packs for electric buses, trucks, and other commercial vehicles. By producing battery packs locally, the company aims to reduce dependence on imported components while strengthening the domestic electric vehicle supply chain. According to the company, the project will also contribute to the development of India’s EV ecosystem by supporting localisation, enhancing technology capabilities, and improving efficiency in EV manufacturing. The facility aligns closely with Tamil Nadu’s Electric Vehicle Policy 2023 as well as national initiatives such as the National Mission on Transformative Mobility and Battery Storage, both of which aim to accelerate electric mobility adoption in India.
Company executives highlighted that the new battery pack unit represents a significant milestone in Ashok Leyland’s electric mobility journey. The facility is expected to enable the development of safer and more efficient battery solutions for the company’s expanding portfolio of electric commercial vehicles. It will also complement the company’s existing manufacturing footprint in Tamil Nadu, where Ashok Leyland already operates several facilities and has invested more than ₹9,000 crore over the decades.
Beyond strengthening Ashok Leyland’s EV strategy, the project is also expected to generate new employment opportunities and support skill development in advanced manufacturing technologies. With the electric commercial vehicle segment gaining momentum in India, the new battery pack facility is likely to play a key role in enabling local production capabilities and reinforcing the country’s transition toward cleaner and more sustainable transportation solutions.
The new battery pack facility by Ashok Leyland in Tamil Nadu is important because it strengthens India’s electric vehicle ecosystem.
First, it supports local manufacturing of EV batteries, reducing dependence on imported components and improving the domestic supply chain. Second, it will help the company scale production of electric buses and trucks, accelerating the adoption of cleaner commercial vehicles in India.
The project also aligns with government initiatives such as the FAME India Scheme, which encourages EV manufacturing and adoption. In addition, the facility is expected to create jobs and strengthen Tamil Nadu’s position as a major automotive and EV manufacturing hub.
In short: the plant will help reduce EV costs, support localisation, and accelerate India’s transition to electric commercial vehicles.
