Ashok Leyland Battery Pack Localization Targets 60% in India

Ashok Leyland Targets Higher Battery Pack Localization

Ashok Leyland is targeting 50–60% localization of its electric vehicle battery packs in India, excluding cells, as it works to reduce dependence on imported components. Managing Director and CEO Shenu Agarwal, who is also the new President-designate of SIAM, mentioned the company is setting up a battery pack facility near Chennai and plans to develop its own battery pack and battery management system technology. “We are going to localise, I would say, more than 50% or maybe 60% of the pack in India, other than the cell,” Agarwal said.

Battery Pack Production Planned for 2027

Production of battery packs for automotive applications is scheduled to begin by the end of 2027. Cell manufacturing does not yet have a firm timeline, although Agarwal said the company is seriously planning toward it. The planned battery packs will not be restricted to Ashok Leyland trucks and buses. The company intends to offer the packs to other automotive manufacturers as well, creating an opportunity to expand the scale of its battery manufacturing operations beyond its own commercial vehicle portfolio.

BESS Could Support Additional Battery Volumes

Ashok Leyland is also evaluating battery energy storage systems (BESS) to generate additional volumes as it develops its battery capabilities. Agarwal said automotive demand alone may not initially provide the scale required to support large investments, making adjacent applications important. The company is drawing on its experience with conventional commercial vehicles as it builds capabilities in newer powertrains. Around 99% of the components used in the company’s diesel trucks are localized after decades of manufacturing in India, while electric trucks still contain significant imported content.

Technology Development Will Combine In-House Work and Partnerships

The company recognizes that building advanced battery technology locally will take time. Agarwal said, “For example, to produce very efficient battery cells or packs in India will take some time,” adding that developing such technology locally or transferring it from elsewhere would require time. India is therefore expected to remain part of a broader technology development strategy as the company evaluates power electronics and other EV technologies. Agarwal said it would not make sense for any company to develop everything in-house, with a roadmap identifying technologies Ashok Leyland will develop itself, areas where it will work with partners, and components that will continue to be sourced from suppliers.

Frequently Asked Questions

What battery pack localization target has Ashok Leyland announced?
Ashok Leyland is targeting more than 50% and potentially 60% localization of its electric vehicle battery packs in India, excluding the battery cells themselves. The company is establishing a battery pack facility near Chennai and plans to develop its own pack and battery management system technology. Production for automotive applications is scheduled to begin by the end of 2027, while cell manufacturing does not yet have a firm timeline. The company also plans to supply battery packs to other automotive manufacturers and explore BESS applications to increase volumes.