Ashok Leyland to invest in Uttar Pradesh

The MoU is to set up an integrated commercial vehicle Bus plant focused on green mobility in Uttar Pradesh

Chennai/ Lucknow- Ashok Leyland Ltd., had signed a Memorandum of Understanding (MoU) with the Uttar Pradesh Government to set up set up Ashok Leyland first integrated commercial vehicle Bus plant focused on green mobility in Uttar Pradesh state.

Mr. Manoj Kumar Singh, Uttar Pradesh's Infrastructure and Industrial Development Commissioner, and Mr. Shenu Agarwal, Ashok Leyland's Managing Director and CEO, signed the MoU. The signing held in Lucknow was directed by the Honourable Chief Minister of Uttar Pradesh, Shri Yogi Adityanath, in the presence of Shri Nand Gopal Gupta, Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion, Government of Uttar Pradesh and Mr. Dheeraj Hinduja, Chairman, Ashok Leyland.

Under this organization, Ashok Leyland will focus on the development of electric buses, with the adaptability to likewise gather different vehicles controlled by at present available fuels as well as arising elective powered buses.

The manufacturing facility will have the capacity to produce 2500 buses/yr. The organization means to slowly extend this ability to oblige up to 5000 vehicles each year throughout the following ten years as the interest for electric and different kinds of transports is supposed to develop significantly over the course of the following couple of years. When functional, this will be the seventh vehicle plant of Ashok Leyland in the country.

Chief Minister Yogi Adityanath quoted, “Today marks a historic milestone for the people of Uttar Pradesh as we extend a warm welcome to Ashok Leyland – India’s leading commercial vehicle manufacturer to partner our state by establishing a greenfield manufacturing plant here focused on green mobility. This addition reinforces our rapidly growing position as a manufacturing hub of repute within India. The Government of Uttar Pradesh is eager to attract private-sector investments aligned with our Net Zero mission. Mitigating emissions through cleaner public and freight transport is a vital step in that direction. We remain steadfast in our commitment to transitioning our entire fleet of diesel buses and commercial vehicles to electric and other alternative fuels in the coming years.”

Commenting on the MoU signing, Shri Nand Gopal Gupta, Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion, Government of Uttar Pradesh said, “Ashok Leyland's decision to set up a factory in Uttar Pradesh will further enhance the strength of the automotive industry in our state. The Department of Industries will continue its efforts to cultivate a supportive supplier network and thereby create additional employment opportunities for our youth. In this manner we also hope to contribute to enhancing the skills of our workforce and bolstering the overall economy of the region. Additionally, within the framework of the Memorandum of Understanding (MoU), the Government of Uttar Pradesh is committed to facilitate the sale of electric buses annually for its own fleet and among other stakeholders for the next five years through Switch Mobility, a subsidiary of Ashok Leyland Limited.” 

Mr. 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. We are excited to venture into the vibrant state of Uttar Pradesh, and we are confident that this new facility will contribute positively to our shared objectives of generating employment opportunities and promoting sustainable mobility in India.”

Speaking at the MoU signing, Mr. Shenu Agarwal, MD & 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 INR 1000 crores in this new facility over the next few years.”