Ashok Leyland has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to set up an integrated commercial vehicle bus plant focused on green mobility, which will be the CV maker's first plant in the State.
Under this partnership, Ashok Leyland will predominantly concentrate on producing electric buses, with the flexibility to assemble other vehicles powered by currently available and emerging alternative fuels.
Also, as part of the MoU, the Government of Uttar Pradesh and Ashok Leyland will engage in discussions to develop more attractive policies aimed at accelerating the adoption of electric and green fuel trucks and buses. These policies will target both the public and private sectors, including private schools and private transportation, as part of their efforts to achieve the State's net-zero objectives.
The MoU was signed by Manoj Kumar Singh, Infrastructure & Industrial Development Commissioner, Govt of Uttar Pradesh and Shenu Agarwal, Managing Director & CEO, Ashok Leyland. The signing ceremony held in Lucknow was presided over by the Yogi Adityanath, Chief Minister of Uttar Pradesh, in the presence of Nand Gopal Gupta, Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion, Government of Uttar Pradesh and Dheeraj Hinduja, Chairman, Ashok Leyland.
Under this partnership, Ashok Leyland will predominantly concentrate on producing electric buses, with the flexibility to assemble other vehicles powered by currently available and emerging alternative fuels.
Adityanath said, “This addition reinforces our rapidly growing position as a manufacturing hub of repute within India. The Government of Uttar Pradesh is eager to attract private-sector investments aligned with our Net Zero mission. Mitigating emissions through cleaner public and freight transport is a vital step in that direction. We remain steadfast in our commitment to transitioning our entire fleet of diesel buses and commercial vehicles to electric and other alternative fuels in the coming years.”
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said,“As we celebrate the 75th anniversary of Ashok Leyland this year, the signing of this MoU with the Government of Uttar Pradesh to establish a manufacturing plant in the State reaffirms our commitment to shaping the future of the commercial vehicle industry.”
Shenu Agarwal, MD & CEO, Ashok Leyland, said,“Ashok Leyland’s mission to achieve Net Zero by year 2048 is one of the triggers to set up this plant in Uttar Pradesh. Contingent on market adoption and demand of alternative fuel vehicles in the State, Ashok Leyland intends to invest up to INR 1,000 crore in this new facility over the next few years.”
The manufacturing facility will initially have the capacity to produce 2,500 buses per year. It intends to gradually expand this capacity to accommodate up to 5,000 vehicles per year over the next decade as the demand for electric and other types of buses is expected to grow substantially over the next few years.
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