Ashok Leyland Set to Begin Electric Bus Production in Lucknow, Plans Major Expansion in UP

Key Highlights:

• Ashok Leyland’s EV bus plant in Lucknow will start production in two months.
• Hinduja Group discussed new investments with the UP government.
• Plans include 600 MW in Jhansi and 1,000 MW in Mirzapur.
• 1:1 bonus shares to be allotted on July 17, trading from July 18.
• Q4 profit rose 38.4% YoY to Rs 1,246 crore.

In a significant development for Uttar Pradesh's electric mobility and industrial growth, the Hinduja Group informed the state government that Ashok Leyland will begin commercial production of electric buses at its new manufacturing facility in Lucknow within the next two months. This was announced during a high-level meeting with Chief Secretary Manoj Kumar Singh on Wednesday.

EV Facility Completed in Just 18 Months

The upcoming Ashok Leyland EV Bus Plant has been built in a record time of just 18 months. The facility is expected to be a major boost for public transport electrification in India and generate new employment opportunities in the region.

According to a government spokesperson, the Hinduja Group delegation held discussions with the state’s top officials to explore future investment opportunities and strategic collaborations in key sectors like electric vehicles, EV charging infrastructure, renewable energy, media, insurance, and digital services.

Hinduja Group Seeks More Land for Expansion

The Hinduja delegation was led by Dr. S.K. Chaddha (Senior Advisor), Ravi Chawla (MD & CEO, Gulf Oil), and Vynsley Fernandes (MD, HGS Limited), among others. The team also presented their future expansion plans, requesting additional land support from the government to scale operations further. One of the key proposals includes the development of 3–4 GW of renewable energy capacity in Uttar Pradesh, with major projects like:

1. 600 MW Renewable Energy Project in Jhansi
2. 1,000 MW Sukhnai Pumped Storage Project in Mirzapur

NXTDIGITAL Plans to Bridge the Digital Divide

Apart from energy and mobility, the group’s media arm, NXTDIGITAL, also presented initiatives aimed at improving digital access across rural and underserved areas of Uttar Pradesh. The goal is to strengthen digital infrastructure and enhance internet connectivity in both urban and rural zones.

Ashok Leyland Announces 1:1 Bonus Share Issue

In a parallel development, Ashok Leyland has announced a 1:1 bonus share issue, the company’s first since 2011. This means every shareholder will receive one additional share for each share they currently hold. The move comes after a strong financial year and aims to reward shareholders for their continued support.

As per the company’s stock exchange filing dated July 9:

• Record Date for bonus eligibility: July 16, 2025
• Allotment Date: July 17, 2025
• Bonus Shares will start trading on: July 18, 2025

Rs 4.25 Dividend & Rs 1,248 Crore Payout

In addition to bonus shares, Ashok Leyland has declared a final dividend of Rs 4.25 per share, pushing the total dividend payout for the year to Rs 1,248 crore. This signals the company’s strong financial health and its intent to share profits with stakeholders.

Strong Q4 Performance: 38.4% YoY Profit Growth

Ashok Leyland’s strong Q4 results for FY2025 have played a key role in these shareholder rewards. The company reported a net profit of Rs 1,246 crore, up from Rs 900 crore in the same quarter last year, marking a 38.4% year-on-year increase. The growth was aided by a tax benefit of Rs 173 crore, further boosting the bottom line.

Also Read: Ashok Leyland Sales Report June 2025: Sold 12,161 units; Report 5.80% Decline

CMV360 Says

The next two months will be crucial for Ashok Leyland and the Hinduja Group as they prepare to roll out electric buses from their newly completed Lucknow facility. Combined with their ambitious renewable energy projects and shareholder-friendly financial policies, the Hinduja Group’s vision appears firmly aligned with India’s goals for sustainable development, green mobility, and digital growth.