Ashok Leyland to Invest Up to ₹1,000 Crore in FY27 to Expand EV and Battery Manufacturing

Ashok Leyland is set to invest between ₹800 crore and ₹1,000 crore during FY27 as the commercial vehicle manufacturer accelerates its transition towards electric mobility and advanced propulsion technologies. The investment signals the company’s continued focus on building a stronger electric vehicle ecosystem while reducing dependence on imported battery systems through greater localisation.

The planned capital expenditure is broadly in line with the ₹1,050 crore invested in the previous financial year. However, the company’s priorities are evolving. Instead of creating new assets, Ashok Leyland is now focusing on commercial deployment, manufacturing expansion and strengthening the supply chain for electric commercial vehicles.

A major share of the investment will be directed towards the company’s battery-pack manufacturing facility in Tamil Nadu. The facility is expected to play a key role in localising battery production, improving supply-chain resilience and lowering the cost of electric commercial vehicles as production volumes increase.

Apart from battery manufacturing, the company will continue investing in alternate-fuel technologies as it prepares for changing market requirements and stricter emission standards. Ashok Leyland has been expanding its presence across electric mobility, hydrogen, LNG and other sustainable transportation solutions as fleet operators increasingly explore cleaner mobility options.

According to a senior company official, the investment reflects Ashok Leyland’s strategy of expanding across the entire electric vehicle ecosystem to better serve a rapidly growing market. The company believes strengthening domestic manufacturing capabilities will improve competitiveness while supporting India’s broader push towards cleaner mobility.

Industry analysts note that battery localisation has become a strategic priority for commercial vehicle manufacturers as India seeks to reduce import dependence and build a domestic EV supply chain. Increasing localisation also helps manufacturers manage costs, improve product availability and respond more efficiently to market demand.

With commercial electric vehicle adoption expected to accelerate over the coming years, Ashok Leyland’s continued investments are expected to strengthen its position in the sector. The expansion of battery manufacturing and alternate-fuel technologies also aligns with the government’s focus on sustainable transportation, domestic manufacturing and the development of a self-reliant electric mobility ecosystem.