Ashok Leyland Raises R&D Spend to Rs 635 Crore to Boost EV Growth

The higher investment will support new product development, improve vehicle technology, and help Ashok Leyland reduce operating costs for customers. In addition, the company plans to strengthen its position in the commercial vehicle industry as demand for cleaner and smarter transport solutions continues to grow.

Company Expands Focus on Electric Vehicle Technology

As part of its long-term strategy, Ashok Leyland has strengthened its R&D operations by setting up three dedicated Centres of Excellence. These teams focus on electric motors, battery technology, and software for electric and autonomous vehicles.

Moreover, the company has started building a greenfield battery pack manufacturing plant at Pillaipakkam near Chennai. This facility will help Ashok Leyland manufacture battery packs locally instead of relying on imports. As a result, the company expects better cost control and a stronger supply chain for its future electric vehicles.

AI and Connected Vehicles Improve Fleet Efficiency

Apart from electric mobility, Ashok Leyland trucks continues to invest in digital technologies. The company currently monitors more than 1.7 lakh connected vehicles through its Uptime Solution Centre, where it processes nearly one terabyte of data every day.

According to the company, this information creates a "closed loop" between vehicle performance and engineering design.

Furthermore, Ashok Leyland uses Artificial Intelligence (AI) for predictive maintenance and advanced safety features. The company says these technologies have delivered double-digit improvements in vehicle uptime and reduced heavy-duty vehicle collisions by 40%. Therefore, fleet operators benefit from lower maintenance costs and improved vehicle availability.

Multi-Fuel Strategy Remains a Key Priority

While electric vehicles remain a major focus, Ashok Leyland continues to develop multiple fuel technologies for different transport needs.

Hydrogen and LNG Development

The company continues to develop hydrogen and LNG-powered commercial vehicles for long-haul transport, where battery charging time and battery weight still remain challenges.

Expanding Electric Truck Portfolio

Ashok Leyland already offers two light electric truck models and three medium and heavy electric truck models. In addition, it plans to expand this portfolio as EV adoption increases across the commercial vehicle market.

ADAS and In-House Software

The company also continues to develop its own software systems and Advanced Driver Assistance Systems (ADAS) to improve vehicle safety and meet future regulations.

Company Targets Long-Term Growth

Ashok Leyland says the commercial vehicle industry is going through a period of major change. Growing infrastructure development and stronger logistics demand continue to create new opportunities. Therefore, the company has committed 25% of its R&D spending and 10% of its capital expenditure to technologies that support environmental and social goals. It also remains committed to achieving net-zero emissions by 2048.

Looking ahead, Ashok Leyland will focus on converting these investments into products that improve customers' total cost of ownership (TCO). At the same time, the company aims to maintain its 30.8% domestic MHCV market share and achieve its export target of 25,000 units in FY27.