Defence Minister Rajnath Singh and Uttar Pradesh Chief Minister Yogi Adityanath on Friday inaugurated Ashok Leyland’s electric bus manufacturing facility at Sarojini Nagar in Lucknow, marking the company’s first integrated electric bus plant in the state.

Company and government officials said the first phase of the project has seen an investment of about ₹252 crore. Total planned capital expenditure is estimated at around ₹1,000 crore as capacity is expanded in phases. The project is expected to generate direct employment for around 1,000 people and indirect jobs for nearly 2,000 others.

A dedicated EV facility for global markets

The plant has an initial annual manufacturing capacity of 2,500 electric buses, which will be scaled up to 5,000 units in subsequent phases. The facility will manufacture 17–18-seater electric buses intended for school transport and inter-city connectivity, with an indicative price of about ₹15 lakh per unit.

Speaking at the event, Chief Minister Yogi Adityanath said the commissioning of the facility reflected improved execution timelines for industrial projects in the state. He noted that the memorandum of understanding for the project was signed in September 2023, followed by land allotment in January 2024.

“The commissioning of this plant within 18 months reflects faster approvals and coordination,” Adityanath said.

The chief minister said Uttar Pradesh accounted for around 19% of India’s total electric vehicle market in 2024 and had emerged as a key beneficiary of central incentive schemes such as FAME I and FAME II. Around 700 electric buses are currently operating in the state, he added.

UP's contribution towards Indian economy

Adityanath also said Uttar Pradesh’s gross state domestic product is expected to reach ₹36 lakh crore by the end of the current financial year, contributing about 9.5 per cent to India’s GDP. The state has set a target of becoming a $1 trillion economy by 2029–30.

Ashok Leyland Chairman Dheeraj Hinduja and Managing Director and CEO Shenu Agarwal were present at the inauguration. The company said the facility was set up under Uttar Pradesh’s FDI and Fortune 500 policy framework. Several Union and state ministers and local representatives also attended the event.