Bus Manufacturer Announces Rs 400-500 Crore Battery Pack Manufacturing Facility in Tamil Nadu

The share price of Ashok Leyland will be in focus after the company announced a new battery pack manufacturing facility in Tamil Nadu. The project will be set up at Pillaipakkam near Chennai and strengthen the company’s presence in the electric mobility ecosystem and localise EV battery pack production in India.

Ashok Leyland’s New Battery Pack Facility in Tamil Nadu,

Chennai in Tamil Nadu. The project is expected to involve an investment of around Rs 400–500 crore and is part of the investment plans of the Hinduja Group under an earlier MoU signed in September 2025. The facility will support local production of EV battery packs and help strengthen the electric vehicle supply chain in India, while also creating employment opportunities in the region.

Ashok Leyland’s Management Commentary

Dheeraj Hinduja, Executive Chairman of Ashok Leyland, said that the company’s journey has been closely linked with the growth of Tamil Nadu for more than seven decades. He added that Ashok Leyland and its subsidiary Switch Mobility have already developed a wide range of electric commercial vehicles, and the new battery pack facility is another step in strengthening the company’s electric mobility plans.

Shenu Agarwal, MD & CEO of Ashok Leyland, said that battery pack technology will play an important role in the future of electric mobility and energy storage. He added that the new facility will help the company build advanced battery pack solutions while supporting the localisation of the battery supply chain and creating opportunities in high-technology manufacturing in Tamil Nadu.

About the Company

Ashok Leyland Ltd is the flagship company of the Hinduja Group and has a strong presence in the medium and heavy commercial vehicle (M&HCV) segment in India. The company has built a well-established distribution and service network across the country and operates in more than 50 countries. Headquartered in Chennai, Ashok Leyland is also known as one of the fully integrated commercial vehicle manufacturers in the industry.

Ashok Leyland Ltd has a market capitalisation of around Rs 1,08,584 crore. The company reports a return on capital employed (ROCE) of about 14.3 per cent and a return on equity (ROE) of around 28.8 per cent. Over the last five years, the company has delivered a profit growth of 54.2 per cent CAGR. It has also been maintaining a healthy dividend payout of around 59.7 per cent.

Disclaimer: The article is for informational purposes only and not investment advice