- 18 Sep 2023
- ICICI Securities
COMPANY SIGNS A MOU TO SET UP E-BUS MANUFACTURING UNIT IN THE STATE OF UTTAR PRADESH
ASHOKLEY - 235 Change: -0.43 (-0.18 %)News: Company has notified that it has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to set up an integrated commercial vehicle Bus plant focused on green mobility in Uttar Pradesh (Electric buses), which will be Ashok Leyland's first plant in the state. The slated plant will have a capacity to manufacture 2,500 buses per annum which may be expanded to 5,000 vehicles per annum, contingent on market demand.
Views: The company plans to spend around Rs. 200 crores for this new facility in the initial phase with its intent to invest Rs 1,000 crore over the next few years. It has been winning decent orders in the E-mobility segment from both state body's as well as CESL tender. Being locally present in the largest market, will help it being preferred OEM supplier and bodes well in the long run. In a separate development, it has formed a JV with TVS Mobility Pvt. Ltd. for its automotive business wherein, it will hold 49.9% stake and invest upto Rs 40 crore.
Impact: Positive