Ashok Leyland’s first electric bus will roll out of its plant in Sarojini Nagar by August 2025, said Dheeraj Hinduja, executive chairman, Ashok Leyland.
He shared exclusive insights into the ambitious plans that promise to revolutionise the EV sector.
“The state-of-the-art plant will come up in the sprawling 70-acre facility. We hope the plant will become a global leader in EV technology. In the first phase, 2,500 buses will be produced annually and, later, the plant will roll out 5,000 buses a year. The plant will be the most modern and state-of-the-art which would lead in technology in the world.
“The EV coming out of this plant will also be exported. However, in later stages, with increase in production, the company may contemplate establishing a dedicated research and development unit within the plant, for innovation and technological advancement in the realm of electric vehicles,” Hinduja said.
Highlighting the potential for employment generation, he said, “The plant will initially employ 500 individuals, with the workforce expected to grow in tandem with the plant’s expansion. Beyond direct employment, the establishment of ancillary units for spare parts’ production is projected to contribute to job creation. The ripple effect is anticipated to extend to indirect employment opportunities as well.”
When asked about the huge cost of EVs, Hinduja acknowledged the current challenge posed by battery costs. He said, “The cost of EVs is directly proportional to the cost of batteries. We hope the cost of batteries will decrease in the days to come, which would subsequently lead to a decline in the overall cost of the vehicle. This strategy aligns with the company’s vision to make EVs more accessible and affordable for a broader consumer base.”
{{/usCountry}}When asked about the huge cost of EVs, Hinduja acknowledged the current challenge posed by battery costs. He said, “The cost of EVs is directly proportional to the cost of batteries. We hope the cost of batteries will decrease in the days to come, which would subsequently lead to a decline in the overall cost of the vehicle. This strategy aligns with the company’s vision to make EVs more accessible and affordable for a broader consumer base.”
{{/usCountry}}When questioned about diversifying into electric car production, he said that the current focus remains on trucks of various sizes, buses, and army vehicles. He emphasised the need for a distinct set up for producing electric cars.
He said, “The company is committed to investing ₹200-500 crore in the first phase, with the overall investment in the plant estimated at ₹1,000 crore. This significant financial commitment underscores the company’s confidence in the success and impact of the new facility.
“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,” he said.
The facility will manufacture electric buses while also having capability to produce other vehicles powered by existing and other emerging alternate fuels, said Hinduja.
He said, “The state government has supported Ashok Leyland set up the plant in a big way and this shows that U.P. has decided to take the fast track to development.”