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Ashok Leyland has announced plans to invest between INR 400 crore and INR 500 crore to establish a new battery pack manufacturing facility at Pillaipakkam near Chennai in Tamil Nadu. The greenfield facility will support the company's electric mobility strategy and strengthen localisation of battery pack production in India. The project forms part of investment commitments made by the Hinduja Group under a memorandum of understanding signed with the Tamil Nadu government in September 2025. The plant is expected to enhance domestic EV manufacturing capability and contribute to the development of the country's electric vehicle ecosystem.
Ashok Leyland has announced plans to invest up to INR 500 crore to set up a new battery pack manufacturing facility at Pillaipakkam near Chennai in Tamil Nadu. The greenfield project will involve an investment estimated between INR 400 crore and INR 500 crore and forms part of the company's strategy to strengthen its presence in the electric mobility segment. Advertisement
Construction work for the facility has already begun. The project is part of the broader investment commitments made by the Hinduja Group under a memorandum of understanding signed with the Tamil Nadu government in September 2025. The initiative is intended to support the localisation of battery pack manufacturing for electric vehicles and help strengthen the domestic EV supply chain.
The foundation stone for the facility was unveiled by Tamil Nadu Chief Minister M. K. Stalin in the presence of state Industries Minister T. R. B. Rajaa and other government officials. Senior leadership from Ashok Leyland, including Managing Director and Chief Executive Officer Shenu Agarwal and Executive Chairman Dheeraj Hinduja, were also present at the ceremony along with representatives from the state's investment promotion agencies.
Dheeraj Hinduja stated that the company has had a long association with Tamil Nadu and that the new facility further strengthens this relationship. He noted that the investment reflects the company's commitment to building capabilities in electric mobility and developing the ecosystem required to support the transition to cleaner transportation.
Shenu Agarwal indicated that battery technology will play a critical role in the future of electric mobility. He said the new facility will enable the company to design and manufacture advanced battery pack solutions with improved performance, safety, and efficiency. The plant is also expected to support localisation of key EV components, which remains an important focus area for the automotive industry.
Ashok Leyland has been expanding its electric vehicle portfolio through its subsidiary Switch Mobility, which develops electric buses and light commercial vehicles. The company has already introduced several electric commercial vehicle models in the Indian market and has been strengthening its EV capabilities through technology development and manufacturing investments.
The upcoming battery pack facility is expected to support this transition by providing a dedicated manufacturing base for battery systems used in electric commercial vehicles. Local production of battery packs can help reduce dependence on imports and improve supply chain efficiency for EV manufacturers operating in the country.
The investment also aligns with the Tamil Nadu Electric Vehicle Policy 2023, which aims to attract investments in EV manufacturing, battery production, and related supply chains. Tamil Nadu has emerged as one of India's key automotive and EV manufacturing hubs, hosting several vehicle manufacturers and component suppliers.
Ashok Leyland has a long industrial presence in the state. The company established its first manufacturing facility in Ennore in 1948 and has since expanded its operations across multiple locations in Tamil Nadu. Over the years, it has developed nine manufacturing facilities spread across more than 800 acres in the state and has invested over INR 9,000 crore in the region.
Industry observers note that investments in battery manufacturing are becoming increasingly important as commercial vehicle manufacturers accelerate their transition toward electric mobility. Battery packs represent a significant portion of the cost and technology of electric vehicles, making domestic manufacturing capabilities essential for long-term growth of the EV industry.
The new facility near Chennai is expected to play an important role in supporting Ashok Leyland's electric mobility plans while also contributing to the development of India's EV manufacturing ecosystem.
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