Ashok Leyland has inaugurated its first integrated electric bus manufacturing facility in Uttar Pradesh. The plant is located in Sarojini Nagar, Lucknow, and is the company’s first manufacturing unit in the state.
The facility was inaugurated on January 9, 2026, by Defence Minister Rajnath Singh. Uttar Pradesh Chief Minister Yogi Adityanath and Union Heavy Industries Minister H D Kumaraswamy were present at the event. Construction of the plant was completed in about 16 months.
The Lucknow facility is spread across nearly 70 acres. In the first phase, it has an annual manufacturing capacity of 2,500 vehicles. The company plans to increase capacity to 5,000 vehicles per year in subsequent phases.
The plant will manufacture electric buses, electric travellers and electric cargo vehicles. It has also been designed to support internal combustion engine vehicles and alternative fuel-based platforms, allowing different vehicle technologies to be produced at the same site.
The first phase of the project has involved an investment of around ₹252 crore. As capacity is expanded, the total planned capital expenditure is expected to reach approximately ₹1,000 crore.
The application for the plant was submitted in December 2024, and the ground-breaking ceremony was held in February 2024. This shows a relatively short development timeline for a manufacturing facility of this scale.
According to company, the Lucknow plant is expected to create around 1,000 direct jobs. In addition, nearly 2,000 indirect jobs are expected to be generated through suppliers, contractors and other ancillary services.
These jobs are expected to support the local manufacturing and logistics ecosystem in and around Lucknow.
The facility has been developed with environmental compliance measures in place. It is IGBC Platinum-rated and includes a 1 MW rooftop solar power system. The plant follows zero liquid discharge processes and has 100%t rainwater harvesting systems.
An in-house sewage treatment plant has also been installed to manage wastewater generated at the facility.
State government data shows that Uttar Pradesh has received investment proposals worth about ₹45 lakh crore. The state currently has around 18,000 startups, supported by expanding expressway networks and rail-based transit projects.
Read More: Ashok Leyland Joins ₹1 Trillion Club as Stock Rallies 80% from April Low!
As of January 9, 2026, 3:30 pm, Ashok Leyland share price closed at ₹188.10, a 1.94% increase from the previous closing price.
With the commissioning of the Lucknow unit, Ashok Leyland adds an electric-focused manufacturing base in Uttar Pradesh. The facility is planned to scale capacity over time as additional phases are implemented.
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Published on: Jan 10, 2026, 8:35 AM IST
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