Ashok Leyland to inject Rs 1,000 crore in a greenfield plant in UP for manufacturing of e-buses

18 Sep 2023 , 11:05 AM

According to a press release, Ashok Leyland has entered into an agreement with the Uttar Pradesh government to establish a greenfield plant that will manufacture electric buses.

As per the company, the Hinduja Group flagship will invest Rs 1,000 crore in the facility over the next three years. 

The factory, Ashok Leyland’s seventh in India, will initially have a capacity of 2500 buses per year. It can be scaled up to 5,000 cars per year over the next decade, as demand for electric and other types of buses is predicted to increase significantly in the coming years.

Nand Gopal Gupta, Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion, Government of Uttar Pradesh, said in a statement, ‘Within the framework of the agreement, the Government of Uttar Pradesh strives 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.’

While Ashok Leyland will primarily focus on the production of electric buses under this agreement, it will also have the flexibility to assemble other vehicles powered by currently accessible fuels as well as upcoming alternative fuels, according to the release.

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