Ashok Leyland signs MoU with UP govt to set up integrated commercial vehicle, e-bus plant

Lucknow (Uttar Pradesh) [India], September 15 : Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer on Friday signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government for setting up an integrated commercial vehicle and electric bus plant in the state, said an official release.
This will be the first Ashok Leyland plant in UP. Under this partnership, Ashok Leyland will predominantly produce electric buses, with the flexibility to assemble other vehicles powered by the currently available fuels as well as emerging alternative fuels.
According to an official release, "World's leading commercial vehicle manufacturer, Ashok Leyland, will set up an electric bus manufacturing unit in Uttar Pradesh. The MoU was signed in this regard between Ashok Leyland and the Government of Uttar Pradesh in a program organized in the presence of Chief Minister Yogi Adityanath on Friday."
Welcoming Ashok Leyland to Uttar Pradesh on a special occasion, Chief Minister Yogi Adityanath said that today is a historic milestone for the people of Uttar Pradesh.
He said that it was surprising that Ashok Leyland had not yet had a presence in a state like UP, which has a huge population of 25–30 crore and is the largest youth capital in the country. In this sense, today is a historic day, stated the release.
The Chief Minister stated that the state government is committed to providing security and facilities to all its investors. He said that the industrial groups that used to avoid coming here until six years ago are now expanding their establishments after coming here, it added.
He also mentioned that Ashok Leyland's decision to invest in Uttar Pradesh is timely, and the entire Hinduja Group will benefit from it.
CM Yogi also emphasized that this step by Ashok Leyland aligns with Prime Minister Narendra Modi's vision, where the country is determined to reduce dependence on traditional fuel options.
He said that the Uttar Pradesh government is eager to attract investment from the private sector in line with the Net Zero mission. Reducing emissions through cleaner public and freight transportation is an important step in that direction, said the release.
The government is working continuously on the manufacturing and operation of electric vehicles. The administration had also issued state policies in this regard.
He further said, “Today, most of the EVs are registered in Uttar Pradesh, and efforts are underway to develop more charging stations. Electric vehicles are being incorporated into the UPSRTC fleet, and EVs are being operated in various cities”, the release added.
Chairman of Ashok Leyland Dheeraj Hinduja mentioned that this year, Ashok Leyland is celebrating its 75 anniversary. Signing this MoU with the Government of Uttar Pradesh to set up a manufacturing plant in the state expresses our commitment to shape it, the release said.
He further highlighted that the administrative environment in Uttar Pradesh is conducive to the development of industries, and the company is eager to take full advantage of it.
Providing details about the activities before the MoU signing, the Chairman mentioned that for the first time, a discussion regarding investment with Uttar Pradesh took place just this year on August 10, and today it is September 15.
Everything has been finalized within a mere 36 days. He said that if work is carried out efficiently, just like Chief Minister Yogi Adityanath's team in other states as well, it will significantly transform the industrial landscape, stated the release.
The Chairman expressed his gratitude to Chief Minister Yogi Adityanath and his entire team for their quick decisions. He also praised the state government, stating that under the guidance of the Chief Minister, Uttar Pradesh has become a ‘dynamic state’ today.
Giving information about the proposed unit, Dheeraj Hinduja said that this new unit in Uttar Pradesh will start in the next 18 months. He informed that the work on various dimensions of e-mobility will be done in the state in a phased manner, it added.
He said that they are working on a plan to convert their entire fleet of diesel buses and commercial vehicles into electric and other alternative fuels in the coming years, it said.
Nand Gopal Gupta 'Nandi,' the Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion of the Uttar Pradesh government, stated that Ashok Leyland's decision to establish a unit in Uttar Pradesh will further enhance the strength of the company.
He said that this would create additional employment opportunities for our youth, thereby improving their skills and strengthening the overall economy of the region, said the release.
Under the MoU, Ashok Leyland will set up an integrated commercial vehicle bus manufacturing plant in Uttar Pradesh focused on e-mobility. Notably, this will be Ashok Leyland's first plant in the state, it said.
The release further said, "Under this partnership, Ashok Leyland will primarily concentrate on the production of electric buses, while also having the facility to assemble other vehicles operated by currently available fuel alongside emerging alternative fuels."
The MoU was signed by Manoj Kumar Singh, Infrastructure and Industrial Development Commissioner, Government of Uttar Pradesh and Shenu Agarwal, Managing Director and CEO of Ashok Leyland, said the official release.