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Ashok Leyland has announced plans to begin production at its electric vehicle (EV) battery pack manufacturing facility during the first half of FY28, as the company strengthens its electric mobility and localisation strategy.
During a media interaction on Thursday, the company management said the battery pack project, being developed in partnership with Chinese battery manufacturer CALB, is progressing according to schedule. Managing Director Shenu Agarwal said the company expects the plant to commence production in the first or second quarter of the next financial year.
The facility is being set up at Pillaipakkam near Chennai and will support the company’s expanding electric bus and electric light commercial vehicle operations. Ashok Leyland has been steadily growing its EV business through its subsidiary Switch Mobility, which achieved profitability in FY26.
According to the company, Switch India recorded a 238 percent growth in electric bus sales during FY26, selling 1,530 e-buses. Electric light commercial vehicle sales also increased by 56 percent to nearly 1,600 units. The management said demand for electric commercial vehicles in India, especially in the bus segment, continues to remain strong.
Chairman Dheeraj Hinduja said around 15,000 electric buses have been tendered in recent months, indicating strong momentum in the market. He added that apart from light commercial vehicles, private customers are also increasingly adopting electric vehicles in higher tonnage categories such as 55-tonne trucks.
Hinduja noted that despite recent price increases, the total cost of ownership (TCO) for electric vehicles has become increasingly attractive. He said India is progressing rapidly in the adoption of alternate fuels and electric mobility compared to many global markets.
Battery pack localisation is becoming strategically important for commercial vehicle manufacturers as it helps reduce costs, improve supply-chain control and qualify for government localisation-linked incentives. Ashok Leyland recently inaugurated a new electric bus manufacturing plant in Lucknow and said it will continue investing in electric and hydrogen-powered commercial vehicle technologies.
