Ashok Leyland Zooms 2% on Green Mobility Plant Announcement

21 Feb 2024 , 09:45 AM

In early trade on February 21, shares of Ashok Leyland Limited witnessed a 2% increase, reaching Rs 176, following the company’s announcement of the establishment of an integrated commercial vehicle plant emphasizing green mobility in Uttar Pradesh.

Spanning across 70 acres, the greenfield manufacturing facility is described by the company as its most modern and environmentally friendly factory globally, equipped with cutting-edge manufacturing technology.

As of 9:43 am, the stock was trading at Rs 175.75, reflecting a 1.62% rise from the previous close on the NSE. However, the stock has experienced a nearly 5% decline since the beginning of the year.

Ashok Leyland disclosed that the primary focus of the plant would be on the production of electric buses, while also possessing the capability to manufacture other vehicles powered by both existing and emerging alternate fuels.

Initially, upon commencement of operations, the facility aims to produce 2,500 vehicles annually. However, the company has ambitious plans to ramp up this production capacity to 5,000 vehicles per year within the next decade, strategically aligning with the expected surge in demand for electric and various other types of vehicles in the coming years.