Ashok Leyland, the flagship company of theHinduja Group, on Friday inaugurated a RS 1000 crore greenfield factory in Lucknow, Uttar Pradesh focused on Clean Mobility. The facility will primarily manufacture electric vehicles and has an initial capacity of up to 5,000 vehicles per annum, the company said in a statement.
“The inauguration of this new plant marks the beginning of an important new chapter for Ashok Leyland in the vibrant state of Uttar Pradesh,” said Dheeraj Hinduja, Chairman, Ashok Leyland. He added that the Hinduja Group remains committed to unlocking further opportunities in the region.
The Lucknow unit will manufacture electric buses, electric travellers and electric cargo vehicles. The integrated facility is also designed to produce internal combustion engine vehicles and alternative fuel-based platforms, allowing the company to cater to both domestic and global markets, as per reports.
The project is expected to generate direct employment for around 1,000 people and indirect employment for nearly 2,000 more, providing a boost to the local manufacturing ecosystem. Most of the workforce has been hired locally from Uttar Pradesh, with a significant share of women employees, the commercial vehicle maker said.
Project Timeline and Strategic Investment
In September 2023,Ashok Leylandhad signed a memorandum of understanding with the Uttar Pradesh government to set up a greenfield bus manufacturing facility focused on clean mobility with an investment of ₹1,000 crore. During the company’s AGM earlier this year, Hinduja said the Lucknow plant is expected to commence commercial production in October 2025.
The Lucknow facility is Ashok Leyland’s seventh operational plant. It already operates manufacturing units at Ennore and Hosur in Tamil Nadu, Bhandara in Maharashtra, Alwar in Rajasthan, Pantnagar in Uttarakhand and Vijayawada in Andhra Pradesh.
After complete ramp-up of the Andhra Pradesh and Lucknow plants, the company’s total bus body-building capacity will reach over 20,000 units per year from roughly 12,000 currently.
The plant, located in Sarojini Nagar, Lucknow, was inaugurated by Uttar Pradesh Chief Minister Yogi Adityanath, Union Defence Minister Rajnath Singh and Union Minister for Heavy Industries and Public Enterprises H D Kumaraswamy.
What did Managing Director and CEO, Ashok Leyland say?
Commenting on the Lucknow plant, Shenu Agarwal, Managing Director and CEO, Ashok Leyland, said the plant is equipped with modern technology and high levels of automation, underscoring the company’s focus on 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,” he said.
Ashok Leyland recently reported a 29% year-on-year growth in domestic medium and heavy commercial vehicle (M&HCV) volumes to 13,553 units in December. Shares of the company closed 2% higher at ₹188.10 on the NSE.
