Ashok Leyland To Invest Rs. 1000 Cr In A New Plant In U.P

A commercial vehicle manufacturer, Ashok Leyland has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. The MoU will see Ashok Leyland set up an integrated commercial vehicle Bus plant focused on green mobility in Uttar Pradesh, which will be the first Ashok Leyland plant in the state.

Under this partnership, Ashok Leyland will 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, “This addition reinforces our rapidly growing position as a manufacturing hub of repute within India. 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.”

Upon commencement of operations, the manufacturing facility will initially have the 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. Once operational, this will be the seventh vehicle plant of Ashok Leyland in the country.

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.”

Also, as part of the MoU, the Government of Uttar Pradesh and Ashok Leyland will engage in discussions to develop more policies aimed at accelerating 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.

The MoU was signed by Manoj Kumar Singh, Infrastructure & Industrial Development Commissioner, Govt of Uttar Pradesh and Shenu Agarwal, Managing Director & CEO, Ashok Leyland.

Speaking at the MoU signing, Shenu Agarwal, MD & CEO of Ashok Leyland, said, “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. 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.” 

Uttar Pradesh has the highest number of registered Electric Vehicles (EVs) in India, constituting approximately 25 per cent of the nation's total EV fleet.