Ashok Leyland enters UP with first e-bus plant, bets Rs 1,000 crore on Lucknow manufacturing hub

The new plant was inaugurated by Defence Minister Rajnath Singh in the presence of Chief Minister Yogi Adityanath and Union Heavy Industries Minister H D Kumaraswamy.

• Ashok Leyland opens first electric bus plant in Lucknow, UP
• Facility has initial capacity of 2,500 vehicles, expandable to 5,000 per year
• Plant earns IGBC Platinum rating, uses solar power, and advanced sustainability measures

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Hinduja Group flagship Ashok Leyland on Friday inaugurated its first integrated electric bus manufacturing facility in Uttar Pradesh, signalling a major expansion of its electric and alternative-fuel vehicle footprint and reinforcing the state’s pitch as a fast-growing industrial hub.

The new plant, located in Sarojini Nagar, Lucknow, was inaugurated by Defence Minister Rajnath Singh in the presence of Chief Minister Yogi Adityanath and Union Heavy Industries Minister H D Kumaraswamy.

Built over nearly 70 acres in a record 16 months, the facility marks Uttar Pradesh’s first dedicated e-bus manufacturing unit. In the initial phase, the plant has an annual production capacity of 2,500 vehicles, which will be scaled up to 5,000 units in subsequent phases.

The Lucknow unit will manufacture electric buses, electric travellers and electric cargo vehicles. The integrated facility is also designed to produce internal combustion engine vehicles and alternative fuel-based platforms, enabling Ashok Leyland to serve both domestic and global markets from the site.

Company and government officials said the first phase has seen an investment of about ₹252 crore, while the total planned capital expenditure is pegged at around ₹1,000 crore as capacity expands. The project is expected to generate direct employment for around 1,000 people and indirect jobs for nearly 2,000 more, giving a boost to the local manufacturing ecosystem.

Addressing the event, Rajnath Singh said Uttar Pradesh has emerged as a preferred investment destination, moving away from its earlier image of weak law and order. “This is a very big change. Investment means employment, and it will ensure that the youth of Uttar Pradesh get jobs within the state,” he said.

Singh praised Chief Minister Yogi Adityanath’s leadership, saying he had earlier known him as a skilled politician but had now realised that he was equally adept in economics. “You know very well how to attract investment and how to generate profit. The way Uttar Pradesh is being run today, the state’s rating can easily be called excellent,” he said.

The Defence Minister also referred to the manufacturing of BrahMos missiles in the state, saying India was no longer a weak nation but one that makes its own weapons, with Uttar Pradesh playing a major role. He congratulated the Chief Minister for improvements in law and order, calling them exemplary.

Chief Minister Yogi Adityanath said the Ashok Leyland investment reflected the broader industrial transformation of Uttar Pradesh over the past eight years. “There was chaos everywhere and the state was struggling for identity. Today, it is not unrest but a festive atmosphere. There has been no riot in the last eight years,” he said. He added that Uttar Pradesh was no longer a “Bimaru” state but had emerged as one of the highest revenue-generating states, with some festival or major event taking place almost every week.

Congratulating the Hinduja family, the Chief Minister said the investment reflected the transformation witnessed in the past eight years. “Investment is reaching every district. Uttar Pradesh is no longer a state of unlimited potential alone, it has become a state that converts potential into results,” he said.

The Lucknow facility has been positioned as a green manufacturing unit aligned with the state’s sustainable industrial policy. It is IGBC Platinum-rated and features a 1 MW rooftop solar power system, zero liquid discharge processes, 100 percent rainwater harvesting and an in-house sewage treatment plant.

State officials said Uttar Pradesh has so far received investment proposals worth about ₹45 lakh crore, supported by rapid expansion of expressways, rail-based rapid transit projects and a growing startup ecosystem. Around 18,000 startups are currently operating in the state, according to government data.

For Ashok Leyland, the Lucknow plant adds to its growing portfolio of EV-focused manufacturing assets as competition intensifies in India’s electric commercial vehicle space, especially in the electric bus segment driven by government procurement and urban transport electrification.

Ashok Leyland Lucknow Factory: Key facts

Location: Sarojini Nagar, Lucknow

Plant inauguration: January 9, 2026

Land area~70 acres

Construction period: 16 months

Initial investment: Rs 252 crore

Total planned CapEx: Rs 1,000 crore

Initial capacity: 2,500 vehicles per year

Expanded capacity (planned): 5,000 vehicles per year

Products: Electric buses, electric travellers, electric cargo vehicles; future-ready for ICE and alternative-fuel platforms

Direct employment: 1,000

Indirect employment: 2,000

Sustainability features: IGBC Platinum-rated, 1 MW solar plant, zero liquid discharge, 100% rainwater harvesting, modern STP

Application received: December 13, 2024

Ground breaking ceremony: February 20, 2024