The state’s first commercial vehicle manufacturing plant would initially produce 2,500 buses per year.

Ashok Leyland struck a deal with the Uttar Pradesh (UP) government on Friday to establish an integrated bus manufacturing factory, the Hinduja Group flagship firm’s first in the state and focused on green mobility.

Over the following three years, Ashok Leyland expects to invest up to Rs 1000 crore on the plant, the location of which has not been disclosed. It will focus on making electric buses while also being able to build other cars fueled by various sources.

“This addition strengthens our rapidly growing position as a reputable manufacturing hub in India.” Mitigating emissions through greener public and freight transportation is a critical first step. “We remain committed to transitioning our entire fleet of diesel buses and commercial vehicles to electric and other alternative fuels,” UP Chief Minister Yogi Adityanath said of the agreement with the firm.

“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,” said Dheeraj Hinduja, executive chairman of Ashok Leyland. 

The factory will initially be able to produce 2,500 buses per year, but will progressively expand to accommodate up to 5,000 cars over the following decade as demand for electric and other types of buses is projected to rise in the coming years. Ashok Leyland, India’s top commercial vehicle maker, will open its eighth vehicle facility in the nation.

“Ashok Leyland’s mission to achieve net zero emissions by 2048 was one of the impetuses for establishing this plant in Uttar Pradesh.” Uttar Pradesh is not only one of our country’s largest and most vibrant states, but it is also tremendously committed to the environment and sustainability. 

Ashok Leyland aims to spend up to Rs 1000 crore in this new plant over the next several years, contingent on market adoption and demand for alternative fuel cars in the state,” said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland.

Ashok Leyland struck an agreement with the government of Uttar Pradesh on Friday to establish an integrated commercial vehicle bus facility focusing on green mobility.

The MoU was signed by Manoj Kumar Singh, the government of Uttar Pradesh’s infrastructure and industrial development commissioner, and Shenu Agarwal, the managing director and chief executive officer of Ashok Leyland.