Ashok Leyland, a flagship company of Hinduja group, announced plans to invest Rs 1,000 crore in Uttar Pradesh to set up a bus manufacturing facility focused on clean and green mobility. This move comes as the company aims to achieve net zero emissions by 2048. Ashok Leyland has signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government to establish the plant, which will be its first in the state. The facility, situated near Lucknow, will initially have the capacity to produce 2,500 buses per year.
The company intends to gradually increase this capacity to accommodate up to 5,000 vehicles per year over the next decade, as the demand for electric and other types of buses is expected to grow substantially. This investment is contingent on the market adoption and demand for alternative fuel vehicles in the state.
The decision to set up the plant in Uttar Pradesh is driven by Ashok Leyland’s mission to achieve net zero emissions. Upon commencement of operations, it will become the seventh vehicle plant of the company in the country.
Speaking about the MoU, Ashok Leyland MD & CEO Shenu Agarwal said, “Contingent on market adoption and demand of alternative fuel vehicles in the state, Ashok Leyland intends to invest up to Rs 1,000 crore in this new facility over the next few years.” This investment will enhance the company’s manufacturing capability and contribute to the growth of the commercial vehicle industry.
Ashok Leyland Chairman Dheeraj Hinduja commented, “The signing of this MoU… reaffirms our commitment to shaping the future of the commercial vehicle industry.” Ashok Leyland is the second largest commercial vehicle maker in India, following Tata Motors.
Shares of Ashok Leyland were trading 1.7% higher at Rs 182.90 apiece on the BSE at the time of this announcement.
As Ashok Leyland continues to expand its presence in the market, the company aims to support the government’s initiatives towards clean and sustainable mobility. This investment will contribute to the growth of the electric vehicle ecosystem and strengthen the manufacturing capabilities in Uttar Pradesh.
