Ashok Leyland plans to strengthen its presence in the commercial electric vehicle (EV) sector by increasing investments in battery manufacturing and electric mobility as part of its long-term growth strategy.

The company is expected to invest between Rs. 8 billion and Rs. 10 billion (US$ 84-105 million) during FY27 to accelerate initiatives in battery production, electric mobility and alternative fuel technologies, according to a local daily.

The planned investment builds on Ashok Leyland's broader strategy to localise battery manufacturing and reduce dependence on imports. The company has previously announced plans to invest Rs. 50 billion over the next seven to 10 years to establish a domestic battery ecosystem through its partnership with China's CALB Group.

Battery manufacturing a strategic priority

A significant portion of the planned investment is expected to support the development of battery manufacturing infrastructure. Earlier this year, Ashok Leyland commenced construction of a greenfield battery pack manufacturing facility at Pillaipakkam, near Chennai, with an initial investment of Rs. 4 billion to Rs. 5 billion. The facility will manufacture battery packs for electric commercial vehicles as well as battery energy storage systems.

The battery pack plant represents the first phase of the company's localisation strategy. Ashok Leyland plans to expand into battery cell manufacturing in the future, subject to market demand and the pace of EV adoption. The phased approach is intended to strengthen domestic capabilities across the battery value chain while supporting India's transition to electric mobility.

Expanding electric commercial vehicle portfolio

In parallel with its battery manufacturing plans, Ashok Leyland continues to expand its electric commercial vehicle business through its subsidiary, Switch Mobility, and its dedicated EV manufacturing facilities.

The company is also investing in electric buses, light commercial vehicles and alternative fuel technologies, including hydrogen and LNG-powered vehicles, as it broadens its clean mobility portfolio.

Ashok Leyland said future investment decisions will depend on market demand, government policy support and the pace of commercial vehicle electrification. By strengthening its battery manufacturing capabilities alongside vehicle development, the company aims to improve supply chain resilience and enhance its competitiveness in India's evolving electric commercial vehicle market.