The company has signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government for the establishment of this plant, which will be the company's first in the state, as stated by the commercial vehicle major.
Upon commencement of operations, the manufacturing facility will have an initial capacity to produce 2,500 buses annually, according to the company.
It also stated that it plans to incrementally expand this capacity to accommodate up to 5,000 vehicles per year in the next decade, anticipating a substantial increase in demand for electric and other types of buses.
Once operational, this facility will become the seventh vehicle plant for Ashok Leyland in the country.
Ashok Leyland is currently the second-largest commercial vehicle manufacturer in India, following Tata Motors.