Lucknow: Ashok Leyland on Friday deepened its electric mobility play with the launch of its integrated electric vehicle manufacturing plant in Lucknow, giving Uttar Pradesh its first dedicated electric bus factory and adding a key node to the company’s expanding green mobility network.
The facility, located in Sarojini Nagar, was inaugurated by Defence Minister Rajnath Singh along with Chief Minister Yogi Adityanath and Union Heavy Industries Minister H D Kumaraswamy. Built over nearly 70 acres in just 16 months, the plant is designed to manufacture electric buses, electric travellers and electric cargo vehicles, while also being future-ready for internal combustion engine and alternative fuel-based platforms.
In its initial phase, the Lucknow plant has an annual capacity of 2,500 vehicles, which will be scaled up to 5,000 units in subsequent phases. The first phase has seen an investment of around ₹252 crore, while the total planned capital expenditure for the facility is about ₹1,000 crore. The unit is expected to generate direct employment for around 1,000 people and indirect jobs for nearly 2,000 others.
Addressing the event, Rajnath Singh said Uttar Pradesh’s economic narrative has undergone a visible shift over the past few years, moving from concerns over law and order to a focus on manufacturing and investment. He credited Chief Minister Yogi Adityanath for creating an environment that attracts industry and said new investments were crucial for job creation and youth employment.
Singh also referred to the growing defence manufacturing presence in the state, including BrahMos missile production, and said Uttar Pradesh was emerging as a significant contributor to India’s self-reliance drive.
Chief Minister Yogi Adityanath said the commissioning of the Ashok Leyland plant reflected the structural changes witnessed in the state since 2017. He said Uttar Pradesh had moved away from the “Bimaru” image and was now among the country’s leading revenue-generating states, with investment reaching every district.
Congratulating the Hinduja family, the Chief Minister said Uttar Pradesh was no longer just a state of potential but one that was converting opportunities into outcomes. He added that improved infrastructure and governance had played a central role in drawing large manufacturing projects to the state.
Earlier in the day, Rajnath Singh, Yogi Adityanath and H D Kumaraswamy inaugurated the plant, inspected the production facilities and took a ride in an electric bus manufactured at the unit. A short film tracing the journey of the Hinduja Group and Ashok Leyland was also screened.
The Lucknow facility has been positioned as a green manufacturing hub. It is IGBC Platinum-rated and features a 1 MW solar power installation, zero liquid discharge processes, 100 percent rainwater harvesting systems and an in-house sewage treatment plant.
The state government said Uttar Pradesh has received investment proposals worth around ₹45 lakh crore in recent years, supported by rapid expansion of expressways, ongoing rapid rail projects and a growing startup ecosystem of about 18,000 ventures.
Company officials said the application for the Lucknow unit was received on December 13, 2024, and the ground breaking ceremony was held on February 20, 2024. The plant was formally inaugurated on January 9, 2026, making it the first dedicated electric bus manufacturing facility in Uttar Pradesh.
