Ashok Leyland plans to invest ₹800-1,000 crore in FY27 in battery manufacturing, electric mobility and alternate-fuel technologies, broadly maintaining its last year’s Rs 1,050 crore investment pace while shifting focus from asset creation to commercial deployment.“We are expanding our footprint across the entire EV ecosystem to better serve this fast-emerging market, and will invest around ₹1,000 crore in FY27,” said a top company officials to businessline.Battery plant moves to centre stageThe company’s immediate priority is its battery-pack manufacturing facility in Tamil Nadu, which is expected to reduce dependence on imported battery systems, strengthen supply-chain resilience and improve the economics of electric commercial vehicles as volumes increase. “We are expanding our footprint across the entire EV ecosystem to be able to better serve this fast emerging market,” said the official.While battery prices are expected to ease over time, recent fluctuations have posed challenges. Truck and bus manufacturers have largely absorbed these cost variations to prevent the impact from being passed on to customers.Ashok Leyland is also exploring new operating models to accelerate EV adoption. Through its wholly owned subsidiary, Ohm Mobility, it is already active in mobility-as-a-service and is evaluating battery-as-a-service solutions that would shift battery costs from upfront capital expenditure to operating expenses linked to vehicle utilisation. The company is also assessing battery swapping for trucks operating in ports and mining locations, where fixed routes make rapid battery replacement practical. Fast charging through megawatt-scale chargers is another solution being considered.The investment push is backed by a strong balance sheet. Ashok Leyland reported record revenue of ₹44,007 crore in FY26, up 13.6 per cent year-on-year, while commercial vehicle sales reached an all-time high of 2,20,437 units. The company ended the year with net cash of ₹5,899 crore, giving it financial flexibility to pursue future technologies and growth opportunities.Moving beyond pilotsThe company believes electric trucks are becoming commercially viable in specific applications. According to Ashok Leyland, electric tractor-trailers have achieved total-cost-of-ownership parity in select cement, steel and mineral transport operations. Wider adoption, however, will depend on charging infrastructure, financing availability and overall fleet economics.The company has already deployed over 20 electric trucks on the Chennai-Bengaluru corridor, where they have collectively covered 1.8 lakh km across e-commerce, pharmaceutical, automotive and retail logistics operations.“The programme was designed to gather performance and reliability data, refine specifications and evaluate supporting ecosystem requirements,” said the official.Switch Mobility India, Ashok Leyland’s electric mobility subsidiary, has emerged as a key growth driver. It reported revenue of ₹1,807 crore and profit after tax of ₹104 crore in FY26, achieving profitability in a segment where many EV businesses are still focused on expanding volumes. During the year, e-bus volumes rose 238 per cent, while electric light commercial vehicle sales increased 56 per cent.No single-fuel answerThe company is simultaneously pursuing a multi-fuel strategy. Alongside battery-electric vehicles, it is expanding LNG and CNG platforms, including long-haul applications using lightweight composite cylinders. Hydrogen remains a long-term focus, with hydrogen buses already operating in Leh-Ladakh and over 20 hydrogen internal combustion engine vehicles deployed with Reliance.The investment programme also supports international expansion. Overseas shipments increased 18.5 per cent to a record 18,082 units in FY26, with Ashok Leyland targeting further growth through local assembly and distribution partnerships in ASEAN and Gulf markets.For FY27, the focus is no longer on building a cleaner vehicle portfolio, but on demonstrating that battery manufacturing, EV platforms and alternate-fuel technologies can deliver a viable business proposition for fleet operators at scale.Published on August 2, 2026