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Ashok Leyland to establish New EV bus manufacturing facility in Uttar Pradesh: MoU signed with Government

Sep 15, 2023

By: BlinkX Research Team

Ashok Leyland Limited has announced that the company has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. This MoU sets the stage for the establishment of a new integrated commercial vehicle bus manufacturing facility, primarily focusing on electric vehicles (EVs) in Uttar Pradesh.

Under this agreement, Ashok Leyland plans to add substantial capacity to its production capabilities. Initially, the facility aims to manufacture 2,500 buses per annum, with the potential to expand to 5,000 vehicles annually based on market demand.

The timeline for this capacity expansion is set at 18 months, counting from the date of land acquisition and obtaining other necessary statutory approvals. The project will require an initial investment of Rs. 200 crores, which the company plans to finance through a combination of internal accruals and borrowings.

The new manufacturing plant signifies Ashok Leyland's commitment to producing electric buses while maintaining the flexibility to assemble vehicles powered by traditional fuels as well as emerging alternative fuels. This move is aligned with the company's strategy to meet the growing market demand for environmentally friendly and sustainable transportation solutions.