The Hinduja Group's flagship company, Ashok Leyland, announced on Friday (15 September) its plan to invest Rs 1,000 crore in Uttar Pradesh for the establishment of a bus manufacturing facility focused on clean mobility.
The company has signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government for this purpose, marking its first manufacturing plant in the state, according to a statement by the major commercial vehicle manufacturer.
This MoU outlines the establishment of an integrated commercial vehicle bus plant with a focus on green mobility near Lucknow.
Ashok Leyland's MD & CEO, Shenu Agarwal, stated, "Contingent on market adoption and demand for alternative fuel vehicles in the state, Ashok Leyland intends to invest up to Rs 1,000 crore in this new facility over the next few years."
One of the driving factors behind setting up the plant in Uttar Pradesh is the company's mission to achieve net zero emissions by 2048, Agarwal added. Initially, upon commencement of operations, the manufacturing facility will have the capacity to produce 2,500 buses annually.
The company plans to gradually expand this capacity to accommodate up to 5,000 vehicles per year over the next decade, as demand for electric and other types of buses is expected to substantially increase in the coming years. Once operational, this facility will become Ashok Leyland's seventh vehicle plant in the country.
Dheeraj Hinduja, Chairman of Ashok Leyland, stated, "The signing of this MoU reaffirms our commitment to shaping the future of the commercial vehicle industry." Ashok Leyland is the second-largest commercial vehicle manufacturer in the country, following Tata Motors.
Ashok Leyland's shares were trading 1.7 percent higher at Rs 182.90 apiece on the BSE.