Ashok Leyland, the Indian flagship of Hinduja Group has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. The MoU will see the company set up an integrated commercial vehicle bus plant focused on green mobility in Uttar Pradesh, which will be the first Ashok Leyland plant in the state.
Under this partnership, Ashok Leyland will predominantly concentrate on the production of electric buses, with the flexibility to also assemble other vehicles powered by currently available fuels as well as emerging alternative fuels.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said, “As we celebrate the 75th anniversary of Ashok Leyland this year, the signing of this MoU with the Government of Uttar Pradesh to establish a manufacturing plant in the state reaffirms our commitment to shaping the future of the Commercial Vehicle Industry.”
Speaking at the MoU signing, Shenu Agarwal, MD and CEO, Ashok Leyland said, “Ashok Leyland’s mission to achieve Net Zero by year 2048 is one of the triggers to set up this plant in Uttar Pradesh. Uttar Pradesh is not only one of the largest and the most dynamic states in our country, but also very firm in its commitment towards environment and sustainability. Contingent on market adoption and demand of alternative fuel vehicles in the state, Ashok Leyland intends to invest up to Rs 1,000 crores in this new facility over the next few years.”
Upon commencement of operations, the manufacturing facility will initially have the capacity to produce 2,500 buses per year. The company intends to gradually expand this capacity to accommodate up to 5,000 vehicles per year over the next decade. Once operational, this will be the seventh vehicle plant of Ashok Leyland in the country.