Chennai, NFAPost: Paving the way for yet another capacity expansion, the Hinduja flagship commercial vehicle manufacturer Ashok Leyland (ALL) on Tuesday held the ground-breaking ceremony to set up a new integrated commercial vehicle plant focused on green mobility in Uttar Pradesh (UP).
In a ceremony held at the new factory site at Kanpur Road, Lucknow, the UP chief minister Yogi Adityanath unveiled the foundation plaque and laid the foundation stone.
The greenfield manufacturing facility will be spread over 70 acres. Packed with latest in manufacturing technology, this will be Ashok Leyland’s most modern and green factory worldwide, delivering world class quality standards.
The primary focus will be on production of electric buses, while also having capability to produce other vehicles powered by existing and other emerging alternate fuels. The company had previously announced that it will investing around Rs 1,000 crore on the project.
Ashok Leyland Executive Chairman Dheeraj Hinduja said the foundation stone laying ceremony marks the beginning of a new chapter for Ashok Leyland in Uttar Pradesh.
“Once operational, the facility will have a positive impact on our common goals of generating employment opportunities and advancing sustainable mobility in India. We remain committed to driving innovation and setting new benchmarks in the field of green mobility. With this new plant, we are preparing ourselves for the future and take one step further to achieve our Net Zero emissions goals,” said Ashok Leyland Executive Chairman Dheeraj Hinduja.
Ashok Leyland MD & CEO Shenu Agarwal said this facility will not only address the rising demand for electric vehicles but also play a vital role in the holistic development of the region.
“Our focus on electric trucks and buses resonates with the evolving landscape of sustainable transportation and pushes us one step further to build a green mobility future,” said Ashok Leyland MD & CEO Shenu Agarwal.
Once operational, the plant will initially have the capacity to produce 2500 vehicles per year. Ashok Leyland plans to expand this capacity to 5000 vehicles annually over the next decade, anticipating the growing demand for electric and other types of vehicles in the coming years.
Ashok Leyland stands to play a pivotal role in Uttar Pradesh’s electric mobility sector, particularly considering the state’s notable accomplishment of having the highest number of registered electric vehicles (EVs) in India, highlighting the state government’s strong commitment to facilitating the transition to eco-friendly transportation solutions.
The establishment of this plant signifies a strategic initiative by Ashok Leyland, placing the company at the forefront of the green mobility revolution in the state. This facility will be Ashok Leyland’s seventh vehicle plant in the country.
Ashok Leyland delivered a record Q3 FY24 performance in line with its focus on profitable growth. It achieved a net profit of Rs 580 crore, an increase of 60% over Q3 FY23 while recorded revenues of Rs 9,273 crore vis a vis Rs 9,030 crore in Q3 FY23, a growth of 2.7%.
The company posted historic high CV volume of 1,38,416 units in the first nine months of the fiscal year and despite global headwinds, achieved export volume of 3,128 units in Q3 FY24 against 2,936 units in the same period last year, registering a growth of 6.5%.
