Ashok Leyland To Begin In-House EV Battery Pack Production By FY28

Ashok Leyland plans to begin production at its EV battery pack manufacturing facility by the first half of FY28 as the commercial vehicle maker deepens its push into electric mobility and localisation.

During a media call on Thursday, the company’s management said the battery pack project, being developed in partnership with Chinese battery manufacturer CALB, is progressing as planned.

“It is progressing as per schedule…We are hoping that we should reach a start of production in this battery-pack manufacturing plant somewhere around quarter one or quarter two of the next fiscal,” said Managing Director Shenu Agarwal.

The facility is being set up in Pillaipakkam, near Chennai, and is expected to support the company’s growing electric bus and electric light commercial vehicle operations.

Ashok Leyland has been steadily expanding its electric mobility business through its EV subsidiary Switch Mobility, which turned profitable in FY26.

The company said Switch India recorded 238% growth in electric bus volumes during FY26, selling 1,530 e-buses, while electric light commercial vehicle sales grew 56% to around 1,600 units.

Management said demand for electric commercial vehicles in India remains strong, particularly in the bus segment.

“The market has continued to do very well,” said Dheeraj Hinduja, Chairman, Ashok Leyland Ltd. “Close to 15,000 vehicles have come up for tender in the last few months. So the growth in buses is definitely moving very strongly.”

“We are also seeing a good movement in the light CV segment. But quite interestingly, even at the higher tonnage, at the 55 tonne vehicle for various applications, private customers are going for electric vehicles,” Hinduja said.

“With the recent price hike, the affordability of electric and overall total cost of ownership is looking very attractive,” he said. “So India, as far as the push to alternate fuels and electric, seems to be moving very well compared to the rest of the global countries.” 

Battery pack localisation is becoming increasingly important for commercial vehicle manufacturers as they look to reduce costs, improve supply-chain control and qualify for government localisation-linked incentives.

The company recently inaugurated a new electric bus manufacturing plant in Lucknow and said it continues to invest in alternate fuel technologies, including electric and hydrogen-powered commercial vehicles.