Ashok Leyland is targeting a place among the world’s top 10 commercial vehicle manufacturers with future-ready products, chairman Dheeraj Hinduja said on Friday. The company inaugurated a ₹1,000 crore greenfield manufacturing facility in Lucknow focused on clean mobility. The plant will primarily manufacture electric vehicles (EVs) and has an initial capacity of up to 5,000 units a year.
Speaking at the inauguration of the state-of-the-art facility, Hinduja said the plant marked a key milestone for both the company and the state. “This is our first manufacturing facility in Uttar Pradesh, and it stands as a symbol of what can be achieved when vision is matched by decisive action,” he said. The plant was inaugurated by Union Defence Minister Rajnath Singh and Uttar Pradesh Chief Minister Yogi Adityanath, in the presence of Union Heavy Industries Minister HD Kumaraswamy and other senior leaders.
Strategic Milestone for Global Expansion
“Our vision going forward is to be among the global top 10 commercial vehicle manufacturers. We will continue to focus on technology leadership to ensure our products remain future-ready and globally competitive,” he said, recalling the company’s journey since its inception in 1948 and its role in supporting national priorities and enabling the movement of people and goods.
Hinduja also praised Uttar Pradesh’s modern infrastructure, improved connectivity, strong law-and-order situation and responsive administration, saying these factors have made the state increasingly attractive for industry. He said the Lucknow plant had been designed for the future, with advanced manufacturing and digital processes, and the flexibility to produce vehicles using electric, alternative fuel and emerging propulsion technologies. “The facility was completed in just 14 months from land acquisition to production,” he added.
Ashok Leyland now operates in more than 50 countries, reflecting its expanding international footprint driven by quality and innovation, Hinduja said. Through its subsidiary Switch Mobility, the company offers a comprehensive range of electric buses and light commercial vehicles in India and overseas.
Future-Ready Manufacturing
The Lucknow facility will manufacture electric buses, electric travellers and electric cargo vehicles. The integrated plant is also designed to produce internal combustion engine vehicles and alternative fuel-based platforms, enabling the company to cater to both domestic and global markets.
The project is expected to generate direct employment for around 1,000 people and indirect employment for nearly 2,000 more, providing a boost to the local manufacturing ecosystem. Most of the workforce has been hired locally from Uttar Pradesh, with a significant share of women employees.
In September 2023, Ashok Leyland signed an agreement with the Uttar Pradesh government to set up a greenfield bus manufacturing facility focused on clean mobility, with an investment of Rs 1,000 crore. At the company’s annual general meeting earlier this year, Hinduja said the Lucknow plant is expected to begin commercial production in October 2025.
The Lucknow facility is Ashok Leyland’s seventh operational plant. The company already operates manufacturing units at Ennore and Hosur in Tamil Nadu, Bhandara in Maharashtra, Alwar in Rajasthan, Pantnagar in Uttarakhand and Vijayawada in Andhra Pradesh. After the full ramp-up of the Andhra Pradesh and Lucknow plants, the company’s total bus body-building capacity is expected to rise to more than 20,000 units a year, from about 12,000 currently.
Commenting on the new facility, Shenu Agarwal, managing director and chief executive, said the plant is equipped with modern technology and high levels of automation, underscoring the company’s focus on quality and innovation. “With a strong emphasis on electric buses, this facility marks a significant step towards building a cleaner, future-ready mobility ecosystem for India,” he said.
Ashok Leyland recently reported a 29% year-on-year increase in domestic medium and heavy commercial vehicle volumes to 13,553 units in December. Shares of the company on Friday closed 2% higher at ₹188.10 on the NSE.