Ashok Leyland to set up bus plant in Uttar Pradesh, invest Rs 1,000 cr

Commercial vehicle manufacturer's first such facility in the state will initially produce 2,500 buses annually

Ashok Leyland on Friday signed an agreement with the Uttar Pradesh (UP) government to set up an integrated bus manufacturing plant, which will be the Hinduja Group flagship firm’s first such facility in the state and focused on green mobility.

Ashok Leyland plans to invest up to Rs 1000 crore on the facility, the location for which was not mentioned, over the next few years. It will concentrate on producing electric buses, with the flexibility to assemble other vehicles powered by other fuels.

“This addition reinforces our rapidly growing position as a manufacturing hub of repute within India. Mitigating emissions through cleaner public and freight transport is a vital step in that direction. We remain steadfast in our commitment to transitioning our entire fleet of diesel buses and commercial vehicles to electric and other alternative fuels," said UP Chief Minister Yogi Adityanath about the memorandum of understanding (MoU) with the company.

Dheeraj Hinduja, executive chairman of Ashok Leyland said, “As we celebrate the 75th anniversary of Ashok Leyland this year, the signing of this MoU with the government of Uttar Pradesh to establish a manufacturing plant in the state reaffirms our commitment to shaping the future of the Commercial Vehicle Industry. We are excited to venture into the vibrant state of Uttar Pradesh.”

The plant will initially have the capacity to produce 2,500 buses annually and gradually expand to accommodate up to 5,000 vehicles over the next decade as the demand for electric and other types of buses is expected to grow over the next few years. It will be the seventh vehicle plant of Ashok Leyland, India’s leading commercial vehicle manufacturer, in the country.

“Ashok Leyland’s mission to achieve net zero by year 2048 is one of the triggers to set up this plant in Uttar Pradesh. Uttar Pradesh is not only one of the largest and the most dynamic states in our country, but also very firm in its commitment towards environment and sustainability. Contingent on market adoption and demand of alternative fuel vehicles in the state, Ashok Leyland intends to invest up to Rs 1000 crore in this new facility over the next few years," said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland.