The initiative is anticipated to strengthen the local manufacturing ecosystem by creating direct jobs for over 1,000 people and indirect jobs for about 2,000 more.
Ashok Leyland Opens ₹1000 Crore Greenfield EV Facility in Lucknow
The Hinduja Group’s main business, Ashok Leyland, opened an RS 1000 crore greenfield facility with a focus on clean mobility in Lucknow, Uttar Pradesh, on Friday. According to a statement from the firm, the plant has an initial capacity of up to 5,000 cars annually and will mostly produce electric vehicles.
“A significant new chapter for Ashok Leyland in the dynamic state of Uttar Pradesh has begun with the opening of this new facility,” said Dheeraj Hinduja, Chairman of Ashok Leyland. The Hinduja Group is still dedicated to creating more possibilities in the area, he said.
Production Focus and Capabilities
The Lucknow facility will produce electric cargo vehicles, electric buses, and electric travelers. According to sources, the integrated facility is also built to manufacture cars with internal combustion engines and platforms based on alternative fuels, enabling the business to serve both local and international markets.
The initiative is anticipated to strengthen the local manufacturing ecosystem by creating direct jobs for over 1,000 people and indirect jobs for about 2,000 more. According to the commercial vehicle manufacturer, the majority of the personnel was employed locally from Uttar Pradesh, including a sizable proportion of female workers.
💼 Investment & Job Creation
- Investment: ₹1000 crore greenfield facility
- Location: Lucknow, Uttar Pradesh
- Direct Jobs: 1,000+
- Indirect Jobs: 2,000+
- Focus: Electric cargo vehicles, buses & travelers
- Local Workforce: Majority employed from Uttar Pradesh, including female workers
Government Collaboration & Strategic Plans
Ashok Leyland and the Uttar Pradesh government inked a memorandum of understanding in September 2023 for the establishment of a ₹1,000 crore greenfield bus manufacturing plant with an emphasis on clean mobility. Hinduja said that the Lucknow facility is anticipated to start commercial production in October 2025 at the company’s AGM earlier this year.
Ashok Leyland’s seventh active factory is located in Lucknow. It now runs production facilities in Vijayawada, Andhra Pradesh; Bhandara, Maharashtra; Alwar, Rajasthan; Pantnagar, Uttarakhand; and Ennore and Hosur, Tamil Nadu.
Expansion of Bus Production Capacity
The company’s overall bus body-building capacity will increase from around 12,000 units annually to over 20,000 units when the Andhra Pradesh and Lucknow operations have fully ramped up. Union Defense Minister Rajnath Singh, Union Minister for Heavy Industries and Public Enterprises H D Kumaraswamy, and Uttar Pradesh Chief Minister Yogi Adityanath officially opened the facility at Sarojini Nagar, Lucknow.
Shenu Agarwal, Managing Director and CEO of Ashok Leyland, commented on the Lucknow facility, saying it has high levels of automation and contemporary technology, highlighting the company’s emphasis on quality and innovation. “This facility is a big step towards developing a cleaner, future-ready transportation environment for India, with a heavy focus on electric buses,” he said.
Market Performance & Outlook
According to Ashok Leyland, domestic medium and heavy commercial vehicle (M&HCV) volumes increased by 29% year over year to 13,553 units in December. On the NSE, the company’s shares ended the day 2% higher at ₹188.10.
⚡ Technology & EV Transition
- Focus: Clean mobility, electric buses & vehicles
- Technology: High automation & contemporary tech
- Impact: Supports India’s shift to electric transportation
- Employment: Local workforce engagement & female inclusion
- Strategic Goal: Serve local & international markets
Frequently Asked Questions
1. What will the facility in Lucknow produce?
In addition to producing electric buses, electric travelers, and electric cargo vehicles, the factory will also be able to create cars with internal combustion engines and other fuels.
2. What is the new facility’s production capacity?
As the facility ramps up operations, the initial manufacturing capacity of up to 5,000 cars annually may be expanded.
3. How many jobs will the plant generate?
Approximately 1,000 direct employment and 2,000 indirect jobs are anticipated as a result of the project, with a large percentage of the labor coming from local sources.
4. When will commercial production begin at the Lucknow plant?
October 2025 is the anticipated start date of commercial production.
5. What effect does this factory have on Ashok Leyland’s total capacity?
The company’s overall bus body-building capacity would rise from 12,000 to over 20,000 units annually after the complete ramp-up of the Lucknow and Andhra Pradesh operations.
Conclusion
An important turning point in Ashok Leyland’s EV strategy and dedication to sustainable transportation is the Lucknow greenfield factory. With cutting-edge technology, a trained local staff, and an emphasis on sustainability, the facility boosts India’s manufacturing sector and speeds up the switch to electric vehicles.
Disclaimer
This post does not provide financial or investment advice; it is just meant to be informative. Before making any investing choices, readers should independently confirm all information and speak with a knowledgeable expert.
