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Ashok Leyland to invest INR 1,000 crores to set up a bus plant in Uttar Pradesh

Ashok Leyland, the Indian flagship of the Hinduja Group and commercial vehicle manufacturer, will set up an integrated commercial vehicle Bus plant focused on green mobility in Uttar Pradesh, the company’s first plant in the state. Ashok Leyland intends to invest up to INR 1000 crores in this new facility over the next few years. The MoU signing ceremony held in Lucknow was presided over by the Chief Minister of Uttar Pradesh, Shri Yogi Adityanath, in the presence of Mr Dheeraj Hinduja, Chairman, Ashok Leyland.

Upon commencement of operations, the manufacturing facility will initially have the capacity to produce 2500 buses per year. The company intends to gradually expand 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 grows. Once operational, this will be the seventh vehicle plant of Ashok Leyland 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. 

Under this partnership, Ashok Leyland will predominantly concentrate on the production of electric buses, with the flexibility to also assemble other vehicles powered by currently available fuels as well as emerging alternative fuels.

Welcoming Ashok Leyland in Uttar Pradesh, Chief Minister Yogi Adityanath said, “Today marks a historic milestone for the people of Uttar Pradesh as we extend a warm welcome to Ashok Leyland – India’s leading commercial vehicle manufacturer to partner our state by establishing a greenfield manufacturing plant here focused on green mobility. The Government of Uttar Pradesh is eager to attract private-sector investments aligned with our Net Zero mission. We remain steadfast in our commitment to transitioning our entire fleet of diesel buses and commercial vehicles to electric and other alternative fuels in the coming years.”

Also, as part of the MoU, the Government of Uttar Pradesh and Ashok Leyland will engage in discussions to develop more attractive policies to accelerate the adoption of electric and green fuel trucks and buses. These policies will target both the public and private sectors, including private schools and private transportation, as part of their efforts to achieve the state’s net-zero objectives.

Uttar Pradesh boasts the highest number of registered Electric Vehicles (EVs) in India, constituting approximately 25% of the nation’s total EV fleet. This remarkable achievement underscores the state’s proactive stance in promoting sustainable transportation. UP Electric Vehicle Manufacturing and Mobility Policy-2022 grants100% exemption on road tax and registration fees for the initial three years following the policy’s implementation for all categories of EVs purchased and registered within the state. State Transport department has recently inaugurated a dedicated EV purchase subsidy portal, accessed at upevsubsidy.in.

Speaking at the MoU signing event, Abhishek Prakash, CEO Invest Up said, “I welcome and congratulate Ashok Leyland and hope for a mutually rewarding association. I commend the efforts of Invest UP Team in realizing the partnership. Furthermore, I wish to underscore that the UP EV Manufacturing & Mobility Policy 2022 stands as one of the foremost policies in the nation, affirming the state’s unwavering commitment to attract investments and position itself as a pivotal driver of India’s economic growth.”

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