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Ashok Leyland Breaks Ground on Battery Pack Manufacturing Facility in Tamil Nadu

Ashok Leyland has commenced construction of a greenfield battery pack manufacturing facility in Pillaipakkam, marking a significant step in strengthening India’s electric mobility and energy storage ecosystem. The project involves an investment of Rs 4 billion to Rs 5 billion (approximately $43–54 million).

The investment is part of a broader financing commitment by the Hinduja Group, under a memorandum of understanding with CALB Group. The partnership aims to develop and manufacture next-generation battery technologies for both automotive and non-automotive applications.

The upcoming facility will support the localisation of battery manufacturing in India, strengthening the country’s electric vehicle supply chain while creating employment and advanced skill development opportunities in Tamil Nadu.

In addition to supporting Ashok Leyland’s own electric vehicle portfolio, the facility is expected to supply battery pack solutions for external demand across the automotive and energy storage sectors.

Commenting on the development, Shenu Agarwal said the new plant will enable the company to produce advanced battery pack solutions with improved efficiency, safety, and reliability, while also helping strengthen localisation in the battery supply chain.

According to the Mercom India Research report India’s Energy Storage Landscape 1H 2025, the country added 48.4 MWh of energy storage capacity during the first half of 2025, a 74 percent decline compared to the 186 MWh installed during the same period in the previous year. India’s cumulative installed energy storage capacity reached 490 MWh by June 2025.

Policy support for domestic manufacturing is also increasing. The Ministry of Power recently directed states and procurement agencies to ensure a minimum of 20 percent local content in battery energy storage system projects implemented under the viability gap funding (VGF) programme.

Ashok Leyland is also participating in emerging clean mobility initiatives. Under the National Green Hydrogen Mission, the company was among those selected for pilot projects to introduce hydrogen-powered buses and trucks.

In another development, OHM Global Mobility secured an order in October 2024 for 500 ultra-low-floor 12-meter electric buses from the Chennai Metropolitan Transport Corporation, further strengthening the company’s presence in India’s electric mobility segment.

The new battery pack manufacturing facility is expected to play a key role in expanding domestic EV supply chains and accelerating India’s transition toward cleaner transportation technologies.