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Ashok Leyland is targeting 50-60% localisation of its electric vehicle (EV) battery packs, excluding battery cells, as it works to reduce dependence on imported components. The company plans to develop its own battery pack and Battery Management System (BMS) technologies in India.
According to Ashok Leyland Managing Director and CEO Shenu Agarwal, who is also the President-designate of SIAM, the company is setting up a battery pack manufacturing facility near Chennai. He said the company aims to localise more than 50%, and potentially up to 60%, of the battery pack in India, excluding the cells.
The company plans to begin production of battery packs for automotive applications by the end of 2027. However, there is currently no fixed timeline for domestic battery cell manufacturing, although Ashok Leyland is seriously evaluating plans in this area.
Ashok Leyland battery packs will not be limited to its own electric trucks and buses. The company also plans to supply these packs to other automobile manufacturers.
The company is also exploring opportunities in Battery Energy Storage Systems (BESS). Agarwal said automotive demand alone may not initially provide the scale required to support large investments. Applications such as BESS could therefore help generate additional volumes and improve economies of scale.
Ashok Leyland is leveraging its experience in conventional commercial vehicles as it develops capabilities in electric powertrain technologies.
According to Agarwal, around 99% of the components used in the company’s diesel trucks are currently localised, following decades of manufacturing experience in India. In comparison, electric trucks still have a significant share of imported components.
He said developing the capability to manufacture highly efficient battery cells and packs in India will take time. Building such technology domestically or transferring it from other markets would also require a significant period.
Ashok Leyland is also evaluating its strategy for power electronics and other EV technologies. The company believes it would not be practical to develop every technology completely in-house.
Agarwal said the company has prepared a technology roadmap that identifies areas it will develop internally, technologies where it will work with partners and components that will continue to be sourced from suppliers.
Through this approach, Ashok Leyland aims to increase localisation in the electric commercial vehicle segment while strengthening its capabilities in batteries, BMS and other key EV technologies.
