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Ashok Leyland Signs MoU With UP Govt To Set Up Bus Plant At ₹200 Cr


In a significant move towards promoting clean mobility and bolstering the commercial vehicle industry, Ashok Leyland, a flagship company of the Hinduja Group, announced on Friday, September 15, its plans to invest ₹1,000 crore in Uttar Pradesh. This substantial investment is geared towards establishing a state-of-the-art bus manufacturing facility, marking the company’s maiden venture in the state.

Phased Investment Approach

To kickstart the development of this facility, Ashok Leyland is allocating an initial investment of ₹200 crore. This initial phase will lay the foundation for the larger project, which is expected to reach ₹1,000 crore in investment over the next five years.

Green Mobility Hub Near Lucknow

The proposed manufacturing facility is set to be located near Lucknow, positioning it strategically within the state. This hub will serve as a beacon for clean and eco-friendly mobility solutions, in line with Ashok Leyland’s mission to address environmental concerns and embrace sustainability.

Capacity and Growth

Upon commencement of operations, the manufacturing facility will have an initial capacity to produce 2,500 buses annually. However, the company has grand ambitions for expansion. Over the next decade, Ashok Leyland plans to gradually increase this capacity to accommodate up to 5,000 vehicles per year. This forward-looking approach aligns with the expected surge in demand for electric and other eco-friendly buses in the coming years.

A Vision for the Future

Ashok Leyland currently holds the position of being India’s second-largest commercial vehicle manufacturer, with Tata Motors leading the industry. This new manufacturing plant in Uttar Pradesh will become Ashok Leyland’s seventh vehicle plant in India.  Ashok Leyland’s substantial investment in Uttar Pradesh’s clean mobility-focused manufacturing facility is poised to play a pivotal role in propelling India’s commercial vehicle industry toward a greener and more sustainable future. This move also aligns with the company’s goal of achieving net-zero emissions by 2048.

Key takeaways for competitive examinations

  • Ashok Leyland’s Managing Director and CEO: Shenu Agarwal
  • Chairman of Ashok Leyland: Dheeraj Hinduja

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