The 70-acre facility in Uttar Pradesh will produce up to 5,000 commercial vehicles annually with focus on electric buses.
09 Jan 2026 | 2672 Views | By Shruti Shiraguppi
Ashok Leyland inaugurated a new commercial vehicle manufacturing plant in Lucknow on January 9, 2026, marking the company's entry into Uttar Pradesh's clean mobility sector. Chief Minister Yogi Adityanath, Defence Minister and Lucknow MP Rajnath Singh, and Heavy Industries Minister H.D. Kumaraswamy inaugurated the facility at Sarojini Nagar Industrial area ...
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Ashok Leyland inaugurated a new commercial vehicle manufacturing plant in Lucknow on January 9, 2026, marking the company's entry into Uttar Pradesh's clean mobility sector. Chief Minister Yogi Adityanath, Defence Minister and Lucknow MP Rajnath Singh, and Heavy Industries Minister H.D. Kumaraswamy inaugurated the facility at Sarojini Nagar Industrial area near Lucknow Airport.
The 70-acre integrated plant will focus primarily on electric vehicle production, with an annual capacity currently at 2,500 units, which will be increased to 5,000 units in phases. The facility employs a predominantly local workforce from Uttar Pradesh, including a significant proportion of women.
The plant incorporates sustainability features including rooftop solar panels, LED lighting, battery-operated logistics systems, positive water balance initiatives, and zero-discharge operations. It represents Ashok Leyland's most advanced manufacturing facility globally.
Dheeraj Hinduja, Chairman of Ashok Leyland, said, "The inauguration of this new plant marks the beginning of an important new chapter for Ashok Leyland in the vibrant state of Uttar Pradesh. Our Group remains deeply committed to unlocking further opportunities that drive economic growth, create meaningful employment, and foster long-term prosperity in the region. This manufacturing plant reaffirms our resolve to help shape the future of India's commercial vehicle industry, and we are confident that it will make a strong contribution towards employment generation while advancing sustainable mobility. With this new plant, we are preparing ourselves for the future and take one step further to achieve our Net Zero emission goals."
Shenu Agarwal, MD & CEO of Ashok Leyland, said, "As one of India's largest and most progressive states, Uttar Pradesh has demonstrated a strong and consistent commitment to environmental responsibility and sustainable development, making it a natural partner in our green mobility journey. This coupled with Ashok Leyland's ambition to achieve Net Zero by 2048 has been a key catalyst for establishing this state-of-the-art facility in Uttar Pradesh. Equipped with most modern technology and high levels of automation, the plant reflects our focus on world-class quality and innovation. With a strong emphasis on electric buses, this facility marks a significant step towards building a cleaner, future-ready mobility ecosystem for India."
The Chief Minister stated that the MoU for the project was signed in September 2023, followed by land allotment in January 2024. The completion of the manufacturing facility within 18 months demonstrates the efficiency of the double-engine government's fast-track approvals and governance framework.
CM Yogi highlighted that Uttar Pradesh accounted for 19 percent of India's total electric vehicle market in 2024, with 700 electric buses currently operating across the state under the FAME I and FAME II schemes. He described the bus manufactured at the new plant as a 17-18 seater vehicle priced at approximately ₹15 lakh, designed for school transportation and inter-city connectivity.
The Chief Minister announced that the Hinduja Group will sign an MoU with the Uttar Pradesh government to provide skill development training to 10,000 youth annually at the facility. He emphasized that the state currently contributes 9.5 percent to India's GDP and is targeting to become a $1 trillion economy by 2029-30.
The inauguration ceremony included Deputy Chief Minister Brajesh Pathak, Cabinet Ministers Suresh Khanna and Nand Gopal Gupta 'Nandi', Transport Minister Dayashankar Singh, MLA Rajeshwar Singh, diplomats, industrialists, and representatives from Ashok Leyland's global dealer and supplier network.
The plant has been established under the state's FDI and Fortune 500 policy. The manufacturing of electric vehicles at the facility will receive support under Uttar Pradesh's Electric Vehicle Policy.
Ashok Leyland is the commercial vehicle manufacturing arm of the Hinduja Group. The company aims to achieve net-zero emissions by 2048.