Ashok Leyland Inaugurates New EV Plant in Lucknow; Unveils ₹15 Lakh Electric Bus

In a major boost to Uttar Pradesh's electric mobility ambitions, Chief Minister Yogi Adityanath and Defence Minister Rajnath Singh inaugurated Ashok Leyland’s new electric vehicle (EV) manufacturing plant in Lucknow on Friday.

The greenfield facility, constructed in a record 18 months, marks a significant milestone in the state's "Double-Engine" growth story. During the inauguration, the company revealed its first product from this line: a 17–18 seater electric bus priced aggressively at approximately ₹15 lakh.

The Game Changer: ₹15 Lakh Electric Bus

The highlight of the launch is the new electric mini-bus designed for school transport and inter-city connectivity.

• Seating Capacity: 17–18 seats.

• Price Point: ~₹15 Lakh (Ex-showroom).

• Target Segment: Schools, last-mile connectivity, and shuttle services.

This competitive pricing places Ashok Leyland in a strong position to disrupt the commercial EV segment, making electric mobility accessible for smaller institutions and operators who previously found EV buses cost-prohibitive.

Production Capacity & Expansion

Located in the Sarojini Nagar Industrial Area, the plant is Ashok Leyland’s first dedicated EV facility in the state.

• Current Capacity: 2,500 units per annum.

• Future Expansion: To be scaled up to 5,000 units in phases.

• Employment: The facility has already generated direct and indirect employment for thousands, with a new MoU signed to skill 10,000 youth annually.

Uttar Pradesh: The New EV Hub of India

Chief Minister Yogi Adityanath highlighted that Uttar Pradesh is rapidly transforming into India’s preferred investment destination.

• Market Dominance: In 2024, Uttar Pradesh accounted for 19% of India’s total electric vehicle market.

• Fleet Strength: Over 700 electric buses are currently operational across the state.

• Economic Vision: The CM reiterated the state's goal to become a $1 Trillion economy by 2029–30, contributing significantly to PM Modi’s Viksit Bharat 2047 vision.

"Before 2017, UP was known for unrest. Today, it is known for 'Fearless Business' and 'Trust'. This plant, operationalized in just 18 months, proves our commitment to fast-track approvals and ease of doing business," said CM Yogi Adityanath.

Strategic Significance

The plant was established under UP’s FDI and Fortune 500 policy. The Hinduja Group (parent company of Ashok Leyland) signed the MoU in September 2023, and the plant was commissioned in January 2026—a timeline the CM cited as proof of the state's robust governance and the success of platforms like Nivesh Mitra.

With 55% of India's mobile manufacturing and a surging auto-component ecosystem, UP is positioning itself not just as a consumer market, but as a global manufacturing hub.

Quick Take for EV Investors