Ashok Leyland To Set Up New Electric Truck Manufacturing Line In Hosur

Ashok Leyland Ltd. has secured India's largest electric truck order, aligning with the government's push to electrify cargo transport. The Chennai-based company will supply 180 electric trucks to Billion Electric Mobility Pvt., an e-mobility platform operating ChargeZone EV charging stations. Valued at Rs 150 crore, the deal involves delivering 14- and 19-tonne BOSS electric trucks and a 55-tonne electric tractor by the fiscal year's fourth quarter.

The BOSS electric trucks boast a range of 225-300 km per charge, depending on the model. They feature dual charging ports that enable a full charge in just 60 minutes. Additionally, these vehicles are modular, allowing for battery swaps with larger packs as needed.

Electric Truck Manufacturing Plans

Ashok Leyland plans to establish a dedicated assembly line for electric trucks at its Hosur plant. This facility is expected to commence operations early next year with an initial production capacity of 5,000 units annually. The move underscores the company's commitment to expanding its electric vehicle offerings.

Despite limited current EV manufacturing, Ashok Leyland aims to focus solely on producing electric trucks. Meanwhile, its subsidiary Switch Mobility will concentrate on building electric light commercial vehicles and buses. The Lucknow plant, set to begin operations in the third quarter of fiscal 2026, will initially manufacture only electric buses.

Cost Parity with Diesel Trucks

Ashok Leyland is nearing cost parity between its electric and diesel trucks regarding total ownership costs. An executive stated that while reducing costs isn't the primary goal, achieving parity is crucial. "The good news is EV costs are coming down, batteries are becoming cheaper…In fact, we are now within striking distance of parity with diesel trucks, or even cheaper," they noted during a media interaction.

The company's CEO Shenu Agarwal expressed optimism about the future of electric trucking in India. "We are just starting on this journey," he said during a media scrum. He mentioned varying predictions for industry growth over the next few years, ranging from 5% to 20% adoption rates.

Government Support for Electric Vehicles

The Indian government's PM E-Drive scheme supports Ashok Leyland's efforts by subsidising electric vehicles in the world's third-largest automotive market. This initiative particularly focuses on electrifying commercial vehicles that predominantly rely on diesel engines.