Ashok Leyland to invest ₹1,000 cr in greenfield bus manufacturing facility in Uttar Pradesh

Commercial vehicle manufacturer Ashok Leyland has signed a memorandum of understanding with the Uttar Pradesh government for setting up a bus plant focused on green mobility in the state at an investment of ₹1,000 crore. This is the first manufacturing plant by the Hinduja Group-led commercial vehicle manufacturer in the state and the seventh plant within the country.

According to the company, once operational, the manufacturing facility will have a capacity to produce 2,500 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 is expected to grow substantially over the next few years.

"Ashok Leyland's mission to achieve Net Zero by the 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 ₹1,000 crore in this new facility over the next few years," says Shenu Agarwal, managing director and CEO, Ashok Leyland.

The company will predominantly focus 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.

Ashok Leyland, which has a market share of 31.2% in the medium and heavy commercial vehicle segment, is planning to expand its capabilities across the electric mobility segment through its subsidiary Switch Mobility. Switch Mobility is the EV (electric vehicle) arm of Ashok Leyland and caters to the company’s EV operations in India.

Earlier this month, Switch Mobility unveiled the electric IeV series under its light commercial vehicle arm. The company also unveiled the 9-meter, hydrogen fuel-cell electric bus, which has been developed in partnership with NTPC (National Thermal Power Corporation).

In June this year, the company partnered with Aidrivers to manufacture electric terminal trucks for the port industry. The inaugural fleet of vehicles is expected to start operations early next year.