Ashok Leyland to Invest Rs 1,000 Crore in Uttar Pradesh for Green Bus Manufacturing Plant
As per the MoU, the company will establish a fully integrated commercial vehicle bus facility near Lucknow, emphasizing green transportation.
Ashok Leyland, the flagship company of the Hinduja Group, announced on Friday that it will invest Rs 1,000 crore in Uttar Pradesh to establish a bus manufacturing plant with a focus on clean mobility. The company has signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government to construct this facility, marking its first presence in the state, as per a statement from the commercial vehicle manufacturer.
As per the MoU, the company will establish a fully integrated commercial vehicle bus facility near Lucknow, emphasizing green transportation.
According to Ashok Leyland MD & CEO Shenu Agarwal, the company plans to invest up to Rs 1,000 crore in this new plant over the coming years, contingent upon market acceptance and demand for alternative fuel vehicles in the state.
One of the driving factors behind setting up the facility in Uttar Pradesh was the company's aim to achieve net-zero emissions by 2048, he stated.
The initial production capacity of the factory will be 2,500 buses annually when it commences operations, the company claimed.
With the expected increase in demand for electric and other types of buses over the next several years, the company stated its intention to progressively raise this capacity to handle up to 5,000 vehicles per year over the next 10 years.
Once operational, this will be Ashok Leyland's sixth automotive facility in the country.
Dheeraj Hinduja, Chairman of Ashok Leyland, commented that the signing of this MoU "reaffirms our commitment to shaping the future of the commercial vehicle industry."
After Tata Motors, Ashok Leyland is the second-largest producer of commercial vehicles in the country.
On the Bombay Stock Exchange (BSE), Ashok Leyland shares were trading 1.7% higher at Rs 182.90 per share.
