Ashok Leyland Limited inaugurated a new commercial vehicle manufacturing plant in Lucknow on 09 January 2026, marking the company’s entry into Uttar Pradesh’s clean mobility manufacturing ecosystem. The facility is located at the Sarojini Nagar Industrial Area near Lucknow Airport and will focus primarily on the production of electric vehicles.
The integrated manufacturing plant spans 70 acres and has an initial annual production capacity of 2,500 electric vehicles, which is planned to be expanded to 5,000 units in phases. The project followed the signing of a memorandum of understanding in September 2023, with land allotment completed in January 2024 and commissioning achieved within 18 months.
The facility has been developed as a sustainability-focused manufacturing unit. It incorporates rooftop solar power systems, LED lighting, battery-operated internal logistics, positive water balance initiatives, and zero-discharge operations. The company said the Lucknow unit is its most advanced manufacturing facility globally, featuring modern production technology and high levels of automation.
Ashok Leyland said the plant employs a predominantly local workforce drawn from Uttar Pradesh, including a significant proportion of women employees. The facility is expected to support direct and indirect employment while strengthening the regional electric vehicle and auto components ecosystem.
“The inauguration of this new plant marks the beginning of an important new chapter for Ashok Leyland in the state of Uttar Pradesh,” said Dheeraj Hinduja, Chairman of Ashok Leyland. “This manufacturing plant reaffirms our resolve to help shape the future of India’s commercial vehicle industry and will make a strong contribution towards employment generation while advancing sustainable mobility.”
“Equipped with modern technology and high levels of automation, the plant reflects our focus on quality and innovation,” said Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland. “With a strong emphasis on electric buses, this facility marks a significant step towards building a future-ready mobility ecosystem for India.”
The electric vehicle produced at the Lucknow plant includes a 17–18 seater electric bus priced at approximately INR 1.5 million. The vehicle is intended for applications such as school transportation and inter-city connectivity and will be supported under Uttar Pradesh’s Electric Vehicle Policy.
Ashok Leyland said the facility has been established under the state’s foreign direct investment and Fortune 500 policy frameworks. The company also plans to undertake skill development initiatives at the site, including training programmes focused on electric vehicle manufacturing and associated technologies.
Ashok Leyland is the commercial vehicle manufacturing arm of the Hinduja Group and operates across trucks, buses, defence vehicles, and power solutions. The company has stated its objective of achieving net-zero emissions by 2048 and is expanding its electric and alternative fuel vehicle portfolio as part of this strategy.