Ashok Leyland opens UP’s first electric bus manufacturing facility

Defence Minister Rajnath Singh inaugurated Hinduja Group flagship Ashok Leyland’s integrated electric vehicle manufacturing plant in Lucknow, marking a major expansion of the company’s electric and alternative fuel vehicle production capacity.  

The plant, located in Sarojini Nagar, was inaugurated in the presence of Uttar Pradesh Chief Minister Yogi Adityanath and Union Heavy Industries Minister H D Kumaraswamy. It is the first dedicated electric bus manufacturing facility in the state.

Developed over around 16 months on a 70-acre site, the plant has an initial annual production capacity of 2,500 vehicles, which is planned to be scaled up to 5,000 units in later phases. The integrated facility will manufacture electric buses, electric traveller vans, and electric cargo vehicles. It is also designed to produce vehicles using internal combustion engines and other alternative fuels, allowing flexibility for domestic and export markets.

Ashok Leyland has outlined a phased investment plan for the project. The first phase involved an investment of about Rs 252 crore, with total planned investment expected to reach around Rs 1,000 crore as capacity expands. The facility is expected to generate around 1,000 direct jobs and about 2,000 indirect employment opportunities, supporting the local manufacturing ecosystem.

Addressing the gathering, Rajnath Singh said Uttar Pradesh has emerged as a preferred destination for investment and employment generation. He noted that improved governance and administrative reforms have contributed to a better business environment in the state.

Chief Minister Yogi Adityanath said the Ashok Leyland project reflects wider industrial changes in Uttar Pradesh in recent years. He stated that the state has moved beyond its earlier economic constraints and is now translating potential into measurable outcomes.

The Lucknow facility has been developed as a green manufacturing unit. It has received an Indian Green Building Council (IGBC) Platinum rating and includes a 1 MW rooftop solar power plant, zero liquid discharge systems, full rainwater harvesting, and an on site sewage treatment plant.

The inauguration also aligns with recent changes in Uttar Pradesh’s electric vehicle policy. While the policy introduced in October 2022 focused on boosting electric vehicle adoption through subsidies and tax exemptions, the revised framework links incentives to local manufacturing. From 14 October 2025, a 100% rebate on registration fees and road tax is available only for electric vehicles manufactured and registered within Uttar Pradesh. The policy shift is aimed at attracting manufacturing investment and supports national initiatives such as Make in India and Atmanirbhar Bharat.

Image Source: hd_kumaraswamy/ X