Ashok Leyland, the automobile company owned by the Hinduja Group, has broken ground on a greenfield battery pack manufacturing facility in Pillaipakkam, Tamil Nadu, with an investment of ₹4 billion (~$43.34 million) to ₹5 billion (~$54.17 million).

This investment is part of the financing committed by the Hinduja Group under a memorandum of understanding entered into  China-based battery technology company, CALB Group, to develop and manufacture next-generation batteries for automotive and non-automotive applications.

The battery pack manufacturing facility aims to strengthen the country’s electric mobility supply chain and create employment and advanced skill development opportunities in Tamil Nadu.

The facility, while supporting Ashok Leyland’s own electric vehicle portfolio, will also cater to non-captive demand across the automotive and energy storage sectors.

Shenu Agarwal, MD and CEO at Ashok Leyland, said, “This facility will enable us to build advanced battery pack solutions with greater efficiency, safety, and reliability while supporting the battery supply chain localization.”

India added 48.4 MWh of energy storage capacity in the first half (1H) of 2025, a 74% decline from 186 MWh added in the same period last year, according to India’s Energy Storage Landscape 1H 2025 Report by Mercom India Research. India’s cumulative installed energy storage capacity reached 490 MWh by the end of June 2025.

Recently, the Ministry of Power directed states and procuring entities to ensure a minimum of 20% local content in the procurement of battery energy storage system projects being implemented under the viability gap funding program.

In 2025, the government launched five pilot projects under the National Green Hydrogen Mission to introduce hydrogen-fueled buses and trucks. Ashok Leyland was among the companies awarded these projects.

In October 2024, OHM Global Mobility, a subsidiary of Ashok Leyland, secured an order for 500 12-meter ultra-low floor electric buses (e-buses) from the Chennai Metropolitan Transport Corporation.