Ashok Leyland will be investing Rs 186 crore to establish a manufacturing unit for electric commercial vehicles at the site of Scooters India Ltd in Lucknow's Sarojininagar Industrial Area.

The company become the second company to be awarded subsidy under the state's newly launched Uttar Pradesh Foreign Direct Investment Policy-2023.

An MoU was signed between the UP government and Ashok Leyland on September 15, 2023 for setting up the plant.

Due to the current pro-electric vehicle policy of the government and with the intent that the project can work as an anchor industry, the evaluation committee recommended the project to the empowered committee.

The latter "noted that Ashok Leyland is in the Fortune India 500 companies list of 2022. An MoU with the government for investment of Rs 1 crore per acre rate of land was signed after which the policy was published for companies with FDI and Fortune India 500 on November 20, 2023".

The project will be a greenfield plant for manufacturing commercial electric vehicles with an installed capacity of 2,500 vehicles per annum and a centre of excellence.

It will manufacture electric buses, bus chassis assembly and bus body building. It will also assemble electric light commercial vehicles and other buses and trucks that are powered by diesel, hydrogen, CNG, LNG etc.