Ashok Leyland’s Greenfield Bus Plant Investment in Uttar Pradesh Signals Commitment to Clean Mobility


In a significant development, Ashok Leyland, India’s leading commercial vehicle manufacturer and a flagship company of the Hinduja Group, has entered into a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. This landmark agreement paves the way for the establishment of a state-of-the-art integrated commercial vehicle Bus plant, with a strong emphasis on green mobility, in Uttar Pradesh. Notably, this will mark Ashok Leyland’s first manufacturing facility in the state.

The MoU, formalized in a signing ceremony held in Lucknow, saw the participation of key dignitaries, including the Honourable Chief Minister of Uttar Pradesh, Shri Yogi Adityanath, and Mr. Dheeraj Hinduja, Chairman of Ashok Leyland. Mr. Manoj Kumar Singh, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, and Mr. Shenu Agarwal, Managing Director & CEO of Ashok Leyland, were the signatories of this historic agreement.

Under this strategic partnership, Ashok Leyland will focus primarily on the production of electric buses, demonstrating its commitment to sustainable and clean mobility solutions. However, the company will maintain flexibility to assemble vehicles powered by conventional fuels, as well as emerging alternative fuels, in response to market demands.

This initiative signifies a significant step towards promoting environmentally friendly transportation and industrial development in Uttar Pradesh. It aligns with the state’s vision for economic growth and sustainability, as articulated by Shri Nand Gopal Gupta, Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion, Government of Uttar Pradesh.

The establishment of the green mobility-focused Bus plant reaffirms Ashok Leyland’s dedication to innovation and its role as a frontrunner in the commercial vehicle industry. This partnership is expected to create numerous employment opportunities and contribute to the state’s industrial development while promoting eco-friendly transportation solutions.

Ashok Leyland’s investment in Uttar Pradesh is poised to make a significant impact on the region’s economy and marks a notable stride towards achieving the goals of clean mobility in India.

Welcoming Ashok Leyland in Uttar Pradesh, Chief Minister Yogi Adityanath Said, “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.” 

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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.” 

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Upon commencement of operations, the manufacturing facility will initially have the capacity to produce 2500 buses per year. The company intends to gradually expand this capacity to accommodate up to 5000 vehicles per year over the next decade as the demand for electric and other types of buses is expected to grow substantially over the next few years. Once operational, this will be the seventh vehicle plant of Ashok Leyland in the country. 

Welcoming Ashok Leyland in Uttar Pradesh, IIDC Shri Manoj Kumar Singh Said, “Today represents a significant moment as this collaboration is a testament to the state government’s unwavering commitment to promoting investment and fostering an ecosystem that reinforces the production of electric and other environmentally friendly fuel-powered vehicles. As Uttar Pradesh continues to solidify its reputation as a manufacturing hub of national significance, this strategic partnership with Ashok Leyland signifies a major step towards sustainable and green mobility solutions.” 

Also, as part of the MoU, the Government of Uttar Pradesh and Ashok Leyland will engage in discussions to develop more attractive policies aimed at accelerating the adoption of electric and green fuel trucks and buses. These policies will target both the public and private sectors, including private schools and private transportation, as part of their efforts to achieve the state’s net-zero objectives. Uttar Pradesh has emerged as the leader in electric mobility, boasting the highest number of registered Electric Vehicles (EVs) in India, constituting approximately 25% of the nation’s total EV fleet. This remarkable achievement underscores the state’s proactive stance in promoting sustainable transportation. Under the UP Electric Vehicle Manufacturing and Mobility Policy-2022, the government is fully committed to facilitating the transition towards eco-friendly transportation solutions. In a bid to stimulate the adoption of EVs, the policy offers a comprehensive incentive by granting a 100% exemption on road tax and registration fees for the initial three years following the policy’s implementation, encompassing all categories of EVs purchased and registered within the state. Aligned with these progressive initiatives, the State Transport department has recently inaugurated a dedicated EV purchase subsidy portal, which can be accessed at This online platform has been strategically designed to simplify and expedite the subsidy application process for prospective EV purchasers, thereby further propelling the adoption of environmentally conscious vehicles throughout the state.

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Speaking at the MoU signing event, Abhishek Prakash, CEO Invest Up said, “I welcome and congratulate Ashok Leyland and hope for a mutually rewarding association. I commend the efforts of Invest UP Team in realizing the partnership. Furthermore, I wish to underscore that the UP EV Manufacturing & Mobility Policy 2022 stands as one of the foremost policies in the nation, affirming the state’s unwavering commitment to attract investments and position itself as a pivotal driver of India’s economic growth.”

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