For Its First Plant, Ashok Leyland Would Invest Rs 1,000 Crore In Uttar Pradesh

Ashok Leyland, the flagship company of the Hinduja Group, said on Friday that it will spend Rs 1,000 crore in Uttar Pradesh to build a bus manufacturing plant with a clean mobility emphasis. The firm and the Uttar Pradesh government have signed a Memorandum of Understanding (MoU) to build the facility, which would be the company’s first in the state, according to a statement from the commercial vehicle manufacturer.

According to the MoU, the corporation will establish a fully integrated commercial vehicle bus facility close to Lucknow that focuses on green transportation.

According to Ashok Leyland MD & CEO Shenu Agarwal, the company plans to spend up to Rs 1,000 crore in this new plant over the next years, depending on market acceptance and demand for alternative fuel cars in the state.

One of the impetuses for establishing the facility in Uttar Pradesh was the company’s goal of reaching net zero by 2048, he said.

The factory’s initial production capacity will be 2,500 buses annually when it begins operations, the firm claimed.

The demand for electric and other kinds of buses is anticipated to increase significantly over the next several years, thus the firm stated that it plans to progressively increase this capacity to handle up to 5,000 cars per year over the next 10 years.

Once operational, this would be Ashok Leyland’s sixth automobile facility in the nation.

Dheeraj Hinduja, chairman of Ashok Leyland, said 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 nation.

On the BSE, Ashok Leyland shares were trading 1.7% higher at Rs 182.90 a share.