Ashok Leyland boosts EV push with Rs 500 crore battery plant

Ashok Leyland on Wednesday announced the launch of a Rs 400–500 crore EV battery pack plant near Chennai, marking a major step in strengthening its electric vehicle manufacturing capabilities in India.

The new EV battery pack plant will be built at Pillaipakkam near Chennai and is aimed at supporting the company’s growing portfolio of electric commercial vehicles.

The project is part of the Hinduja Group’s investment plan under a memorandum of understanding signed with the Tamil Nadu government in September 2025. The facility will manufacture battery packs for electric trucks and buses, helping the company localize key EV components and strengthen India’s domestic electric mobility supply chain.

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Tamil Nadu Chief Minister M.K. Stalin unveiled the foundation plaque at the groundbreaking ceremony, which was also attended by state industries minister T.R.B. Rajaa, senior government officials, and Ashok Leyland’s leadership team including Managing Director and CEO Shenu Agarwal.

“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,” said Dheeraj Hinduja, Executive Chairman, Ashok Leyland.

The EV battery pack plant is expected to support battery localization, improve supply chain reliability, and create new opportunities for skilled jobs in advanced manufacturing. It also aligns with Tamil Nadu’s Electric Vehicle Policy 2023 and India’s National Mission on Transformative Mobility and Battery Storage, both aimed at accelerating electric mobility adoption.

Ashok Leyland already operates several manufacturing facilities in Tamil Nadu and has invested more than Rs 9,000 crore in the state over the years. The new investment strengthens the company’s push into electric commercial vehicles while reinforcing Tamil Nadu’s position as a key hub for EV manufacturing and innovation in India.