Ashok Leyland inaugurated a new commercial vehicle manufacturing plant in Lucknow on January 9, 2026, marking the company’s entry into Uttar Pradesh’s clean mobility ecosystem. The facility, located in the Sarojini Nagar Industrial Area near Lucknow Airport, was inaugurated by Uttar Pradesh Chief Minister Yogi Adityanath, Defence Minister and Lucknow MP Rajnath Singh, and Union Minister for Heavy Industries H.D. Kumaraswamy.
Congratulating the Hinduja Group on its investment, CM Yogi thanked the company for its trust in the Uttar Pradesh government, describing the project as a major milestone for the state’s industrial development.
Reflecting on the state’s journey since 2017, the Chief Minister said Uttar Pradesh had overcome a phase of lawlessness and declining investor confidence to emerge as a state that converts its vast potential into tangible outcomes. He noted that the progress achieved over the past eight-and-a-half years reflects decisive governance and renewed confidence among industries.
The EV plant currently has an annual manufacturing capacity of 2,500 units, which will be scaled up to 5,000 units in phases. CM Yogi said the project aligns with Prime Minister Narendra Modi’s vision of industrial growth combined with environmental protection and has created direct and indirect employment opportunities for thousands of youths.
Highlighting infrastructure development, he said investments are now reaching all 75 districts of Uttar Pradesh. The state hosts 55 percent of India’s expressways, metro services in the highest number of cities, the country’s largest rail network, two dedicated freight corridors, and expanding logistics hubs. Uttar Pradesh is also home to India’s first rapid rail system and operational inland waterways.
CM Yogi emphasised that Uttar Pradesh is no longer a ‘BIMARU’ state, having become a revenue-surplus economy driven by clear intent, policy clarity, and ease of doing business. He noted that 34 sector-specific policies are currently in place, enabling investors to participate across industries without policy paralysis.
Referring to Vision 2047, the Chief Minister said the Ashok Leyland EV plant supports the goals of Make in India and Atmanirbhar Bharat. Over the last 8–9 years, Uttar Pradesh has received investment proposals worth ₹45 lakh crore, with projects worth ₹15 lakh crore already grounded and several more in the pipeline.
He added that Uttar Pradesh contributes 9.5 percent to India’s GDP, with GSDP expected to reach ₹36 lakh crore by the end of the current financial year. The state has set an ambitious target of becoming a $1 trillion economy by 2029–30.
CM Yogi highlighted Uttar Pradesh’s growing dominance in electronics and manufacturing, accounting for 55 percent of India’s mobile phone production and 60 percent of electronic goods output. The state is also home to over 18,000 startups, supported by incubators, Centres of Excellence, and eight unicorns.
The Ashok Leyland EV plant has been established under the state’s FDI and Fortune 500 policy. The MoU for the project was signed in September 2023, with land allotment completed by January 2024 and commissioning achieved within 18 months—reflecting fast-track approvals and efficient governance.
He also noted that Uttar Pradesh accounted for 19 percent of India’s EV market in 2024 and is a major beneficiary of the FAME I and FAME II schemes, with 700 electric buses currently operating across the state.
The plant will manufacture a 17–18 seater electric vehicle priced at around ₹15 lakh, aimed at school transport and inter-city mobility. CM Yogi announced that the Hinduja Group will also sign an MoU with the state government to provide skill development training to 10,000 youth annually, strengthening Uttar Pradesh’s position as a future-ready hub for electric mobility and advanced manufacturing.
Dheeraj Hinduja, Chairman of Ashok Leyland, said the inauguration of the new manufacturing facility marks the beginning of a significant new phase for the company in Uttar Pradesh. He reiterated the Group’s commitment to unlocking opportunities that drive economic growth, generate meaningful employment, and create long-term prosperity in the region. Emphasising the strategic importance of the plant, Hinduja said it reinforces Ashok Leyland’s resolve to help shape the future of India’s commercial vehicle industry while contributing strongly to employment generation and the advancement of sustainable mobility. He added that the new facility strengthens the company’s preparations for the future and represents a key step towards achieving its Net Zero emission goals.
Shenu Agarwal, Managing Director & CEO of Ashok Leyland, highlighted Uttar Pradesh’s consistent focus on environmental responsibility and sustainable development, describing the state as a natural partner in Ashok Leyland’s green mobility journey. He noted that the state’s progressive approach, combined with the company’s ambition to achieve Net Zero emissions by 2048, played a pivotal role in establishing the state-of-the-art facility. Equipped with advanced technology and high levels of automation, the plant underscores Ashok Leyland’s focus on world-class quality and innovation. With a strong emphasis on electric bus manufacturing, Agarwal said the facility represents a major step towards building a cleaner, future-ready mobility ecosystem for India.
The inauguration ceremony included Deputy Chief Minister Brajesh Pathak, Cabinet Ministers Suresh Khanna and Nand Gopal Gupta ‘Nandi’, Transport Minister Dayashankar Singh, MLA Rajeshwar Singh, diplomats, industrialists, and representatives from Ashok Leyland’s global dealer and supplier network.
