Ashok Leyland to Begin Production at Lucknow EV Plant

Ashok Leyland, the flagship company of the Hinduja Group, will begin production at its greenfield Electric Vehicle (EV) manufacturing plant in Lucknow, Uttar Pradesh, within the next one to two months.

Initially, the company’s upcoming plant will manufacture electric buses with an annual capacity of 2,500 units, which will later be ramped up to 5,000 buses. No time period has been specified yet for expanding the plant from its initial capacity, but the company had earlier shared that expansion will be done based on market demand.

The company began construction of this plant in the beginning of FY25. As per media reports at the time of announcement of this greenfield plant, initial investment in this plant has been Rs. 200 crore, which has been funded by a combination of Ashok Leyland’s internal accruals and borrowings. Moreover, it had been reported that the total investment planned for this plant is Rs. 1,500 crore.

Ashok Leyland’s EV plant in Lucknow is being established at a time when the Indian electric vehicle market is witnessing significant growth, driven by rising consumer interest and the need to reduce oil dependence. According to a report by Mordor Intelligence, the India Electric Vehicle Market size is estimated at USD 54.41 billion in 2025 and is expected to reach USD 110.7 billion by 2029, growing at a CAGR of 19.44%.