Ashok Leyland’s battery pack manufacturing plans are designed to boost vehicle integration and open new revenue streams, not just cut costs or meet local-sourcing rules, said Chief Executive Officer Shenu Agarwal during the company’s Q1 FY27 financial results announcement.

The Hinduja Group-controlled truckmaker is building a battery pack plant in Tamil Nadu, with production slated to start in 2027. The facility, located in the SIPCOT Pillaipakkam Industrial Park near Chennai, forms the first phase of a broader INR 75 billion commitment by the group.

Speaking to Motoring Trends on the same, Agarwal's said, “Don't look at the battery pack business just from a cost perspective or localisation perspective. The company will meet local-content requirements to the extent that we can make it more efficient.”

He added that the company is designing its own battery packs and battery management systems in-house, which will let the company integrate it better into its vehicles and create a total cost of ownership advantage for the customer.

The strategy also extends beyond Ashok Leyland's own line-up. “We are also evaluating how to supply the solutions to other automotive players,” Agarwal said, while pointing to rising demand for battery energy storage systems as a separate growth avenue.

“This battery pack business has multiple dimensions,” he noted, adding that the initiative is meant to enhance value for truck and bus customers rather than serve as a narrow cost play.

Earnings call

Ashok Leyland posted a record first quarter with strong domestic commercial-vehicle demand helping the automaker withstand disruptions in international markets and broader geo-political uncertainty.

The company achieved its highest-ever first-quarter revenue, profit before tax and net profit, while its cash position improved by INR 14.31 billion from a year earlier, net of dividend, capital expenditure and investments in group companies, Executive Chairman Dheeraj Hinduja said.

“The business environment tested the robustness of our processes and resilience of our teams and partners. Ashok Leyland has come out stronger, achieving new peaks,” Hinduja said.

Domestic commercial-vehicle industry volumes grew in double digits during the quarter with Ashok Leyland's medium and heavy commercial vehicle truck volumes rising 15 percent from a year earlier.

Domestic light commercial vehicle volumes reached a record 18,874 units, while the company’s overall commercial-vehicle volumes increased 10 percent year-on-year, Hinduja said.

The company also maintained its 14th consecutive quarter of double-digit EBITDA margin underscoring its focus on profitable growth, he said.

Non-commercial vehicle businesses including aftermarket, engines and defence also reported healthy performance, Hinduja said. The company continued to invest in products and manufacturing capabilities including the launch of multi-axle trucks equipped with air suspension, which offers higher payload and lower TCO.

Ashok Leyland also launched a 12-meter fuel-cell bus, which Hinduja described as an industry first.

Its electric mobility subsidiary Switch India recently secured an order for 650 electric buses, while the group’s financing businesses, Hinduja Leyland Finance and Hinduja Finance, reported assets-under-management growth of 20 percent and 13 percent, respectively.

The company remains cautious about global uncertainties but is confident of navigating them on the back of the stronger foundation built in recent years, Hinduja said.

“It was satisfying to see the company deliver in the face of challenges presented by global uncertainties. Our performance demonstrated that the business model we have developed can absorb shocks,” he said.

“We remain cautious of global uncertainties but we are confident of navigating these based on the strong foundation we have built over the last few years,” Hinduja added.

The comments come as Ashok Leyland's international commercial-vehicle volumes fell to 2,461 units in the first quarter from 3,011 a year earlier, primarily because of the crisis in West Asia. Growth in South Asia and Africa partly offset the decline with the company seeing stronger momentum from June.

Hinduja said the company’s domestic performance demonstrates the strength of India's commercial-vehicle market and gives it confidence in its ability to sustain growth despite external volatility.

Ashok Leyland’s battery strategy comes as the company strengthens its portfolio amid robust domestic demand and global uncertainty. By developing battery packs and management systems in-house, the automaker aims to capture more value across the electric-vehicle ecosystem, while exploring external customers and energy-storage applications as additional growth opportunities beyond its core vehicle business.

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Chennai-headquartered commercial vehicle major Ashok Leyland, the flagship company of the Hinduja Group, has inaugurated its new light commercial vehicle dealership in Raichur, Karnataka.

This marks the company's 12th light commercial vehicle dealership in Karnataka, expanding its national sales and service distribution network to more than 945 touchpoints.

Thew new dealership is operated by channel partner SB Motors, the facility is located in Mukram Gunj, Raichur. The location functions as a sales, service and spares outlet, equipped with seven service bays and maintenance tools. The dealership will retail and service Ashok Leyland's light commercial vehicle portfolio, which includes the Saathi, Dost, Bada Dost, Partner and MiTR models, all produced at the company's manufacturing plant in Hosur.

The product range targets various payload segments within small commercial vehicle and light commercial vehicle applications.

The Saathi, which operates in the entry-level small commercial vehicle category, powered by a 45-horsepower engine producing 110 Nm of torque, with a payload capacity of 1,120 kg.

The Bada Dost features an 80-horsepower BS VI engine available across six variants for urban and intercity transport. The Dost range includes the Dost XL and Dost+ XL models, while the Partner covers the four-tonne payload sector in four-wheel and six-wheel configurations using the ZD30 engine. The MiTR platform provides passenger transport options for staff and school bus applications.

Viplav Shah, Head of Light Commercial Vehicle Business, Ashok Leyland, said, "Karnataka has always been an important market for us, and we are excited to further strengthen our presence in this region. Our relationship with customers is built on trust, performance, and shared growth. Our products are known for their superior mileage, reliability, and performance with a robust network and an industry-leading service retention. We take pride in the continued confidence our customers place in us, and the opening of this new dealership marks yet another step in our commitment to delivering world-class products and unmatched service to our valued customers."

At present, Ashok Leyland has an operational base of over 600,000 light commercial vehicles across India.

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Thermo King, a brand of Trane Technologies, has introduced four models to its all-electric EV series transport refrigeration lineup in the Asia Pacific region. The expanded series includes the EV500S, EV500e, EV300e and EV200e models, designed for urban temperature-controlled logistics.

The EV500S and EV500e units target urban distribution networks, including the transit of produce, e-commerce fresh goods and pharmaceutical supplies. The smaller EV200e and EV300e models are designed for short-haul last-mile retail deliveries from urban cold storage distribution facilities. The company shared that across the lineup, operating energy efficiency has increased by 8.3 percent compared to first-generation models.

Helen Ling, Vice-President, Thermo King Asia Pacific, said, "The shift to electric vehicles is transforming urban cold chain distribution, where balancing energy efficiency and temperature stability remains critical. Backed by more than a decade of electric refrigeration expertise, our new EV series marks another step forward in delivering greater energy efficiency, stronger reliability and smarter digital capabilities to customers while supporting more sustainable cold chain transport."

The units feature an intelligent control architecture that maintains interior cargo temperatures within a margin of 0.5 degrees Celsius. An economy mode option allows operators to limit power consumption during transport to conserve vehicle battery range. The hardware platform includes fault protection, automated defrost logic and waterproof casing to allow all-weather operation.

For fleet management, the series offers optional integration with an intelligent monitoring system using industrial-grade hardware. The telematics platform provides two-way remote control functionality, allowing operators to adjust compartment temperatures, modify operating states and clear system alarms via mobile applications, while retaining historical temperature records for compliance verification.

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Mumbai-headquartered automotive major Mahindra & Mahindra has expanded its commercial vehicle lineup with the launch of the Veero 1.1 XXL CNG and the Upgraded Veero Diesel.

The under-3.5-tonne LCVs are built on the company's Urban Prosper Platform (UPP). The Upgraded Veero Diesel is available across dealerships from 8 September 2026, while customer deliveries for the Veero 1.1 XXL CNG are scheduled to begin on 20 September 2026.

The Veero 1.1 XXL CNG incorporates a 1.1-tonne payload capacity and a 2,900 mm cargo deck. It features a 5.1-metre turning radius and is powered by a 1.5-litre naturally aspirated engine delivering 48.5 kW of power and 98 Nm of torque. The LCV has an ARAI-certified fuel efficiency range of 21.4 km/kg, with a combined petrol and CNG driving range exceeding 450 kilometres. Ex-showroom prices for the CNG model start at INR 825,000 for the V2 1.1 XXL SD variant and INR 855,000 for the V4 1.1 XXL SD variant, with an INR 5,000 premium for the Pastel Riversand colour option.

The Upgraded Veero Diesel adds interior equipment updates, including a 26.03 cm touchscreen infotainment system supporting Android Auto, Apple CarPlay and multi-language voice commands. Additional mechanical and convenience additions include cruise control, Lean NOx Trap (LNT) exhaust treatment technology, power windows, fast-charging ports, and remote air conditioning control via the iMAXX telematics platform. Standard cab features include an air conditioning system with heater, a reclining driver's seat, flat-folding seating and a three-person seating layout.

The Upgraded Veero Diesel range spans multiple configurations and is priced at INR 829,000 for the 1.5 XL SD V2 variant, while 1.5 XXL variants range from INR 835,000 for the V2 CBC frame to INR 945,000 for the V6 SD trim.

The 1.6 XXL variants start at INR 8.49 for the V2 SD model, extending to INR 945,000 for the V6 SD option. Metallic grey paint options carry an INR 5,000 price premium across the diesel variants.

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Truck rentals across trunk routes held firm in August, supported by demand ahead of the festive season, according to the Shriram Mobility Bulletin published by Shriram Finance.

The report states that month-on-month rental increases were led by the Mumbai–Kolkata–Mumbai and Bengaluru–Mumbai–Bengaluru corridors, which rose by 2 percent each. The Kolkata–Guwahati–Kolkata route recorded an increase of 1.9 percent, while the Delhi–Kolkata–Delhi route rose by 1.7 percent.

On the other hand, on a year-on-year basis, the Delhi–Kolkata–Delhi route recorded rental growth of 15 percent, followed by Bengaluru–Mumbai–Bengaluru and Kolkata–Guwahati–Kolkata at 11 percent each.

Shriram Finance states that vehicle sales data indicated sequential moderation across multiple categories in August. Commercial tractor and agricultural trailer sales fell by 35 percent MoM, while agricultural tractor sales declined by 27 percent. Sales of maxi cabs, buses and e-rickshaws decreased by 20 percent, 18 percent and 17 percent, respectively. Goods carrier sales dropped by 10 percent, while passenger motor cars and two-wheelers each recorded a 6 percent sequential decline.

In terms of YoY vehicle registrations, the automotive industry maintained growth across categories with the three-wheeler goods vehicles recording a 43 percent growth, maxi cabs by 29 percent and earth-moving equipment rose by 27 percent. Two-wheeler sales increased by 20 percent, goods carriers by 18 percent and passenger cars by 16 percent.

In Kerala, driven by Onam, two-wheeler sales grew by 17.90 percent MoM and 19.09 percent YoY, while four-wheeler sales declined by 3.73 percent MoM, while remaining 9.30 percent higher YoY.

Electric vehicle registrations experienced sequential reductions while expanding on an annual basis. Electric two-wheeler sales declined by 10 percent MoM, electric three-wheelers by 3 percent and electric cars by 13 percent. On a yearly basis, electric three-wheelers sales grew by 98 percent, electric two-wheelers by 90 percent and electric cars by 87 percent.

Fuel consumption patterns showed petrol consumption increasing by 1 percent MoM, while diesel consumption declined by 13 percent. For yearly basis, the same saw a growth of 7.9 percent and 6.4 percent, respectively.

FASTag toll collection volumes grew by 1 percent MoM with value increasing by 0.6 percent, while on yearly basis the same saw a decline by 5 percent, while total value increased by 8 percent.

Sudarshan Holla, Joint MD and COO, Commercial Vehicles, Shriram Finance, said, "The onset of the festive season, led by Onam celebrations in Kerala, has boosted sentiment across the transportation sector. Freight activity remained robust, with truck rentals holding firm on major trunk routes. Consumer demand also strengthened, as evidenced by a notable surge in two-wheeler sales during the festive period. At the same time, transporters are engaging with government authorities to seek relief from the upcoming restriction on BS-IV trucks entering the NCR, scheduled to take effect from November 1."

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