In a significant development for India’s automotive and manufacturing sectors Ashok Leyland the fifth-largest bus manufacturer globally has officially inaugurated its state-of-the-art bus manufacturing plant near Vijayawada, Andhra Pradesh. The facility which was initially proposed in 2018 faced years of delays due to political and administrative challenges but has now been successfully revived under the leadership of Andhra Pradesh’s Minister Nara Lokesh.
The plant, located in Malavalli 40 km from Vijayawada spans 75 acres and is equipped with cutting-edge manufacturing technologies. It is set to produce 2,400 buses annually in its first phase with plans to scale up to 4,800 units. The facility will manufacture Ashok Leyland’s diesel buses as well as electric buses under the Switch Mobility brand, catering to the growing demand for sustainable transportation solutions.
A Journey Marked by Challenges and Revival
The project’s foundation stone was laid in March 2018 under the leadership of then-Chief Minister N. Chandrababu Naidu. However, progress came to a halt after the 2019 state elections, when the YSR Congress Party, led by Y.S. Jagan Mohan Reddy, came to power. Local and administrative hurdles stalled the project for several years, despite its potential to create jobs and boost the state’s industrial growth.
In December 2024, Nara Lokesh, Andhra Pradesh’s Minister and chairman of the cabinet committee on job creation took the initiative to revive the project. He invited the Hinduja family,\ owners of Ashok Leyland,\ for a breakfast meeting in Hyderabad on December 22. During the meeting,\ Lokesh highlighted the state’s commitment to renewable energy and its plans to develop 160 GW of renewable energy capacity over the next five years. He also emphasized Andhra Pradesh’s favorable investment climate for electric vehicles (EVs) and other green technologies.
Collaborative Efforts to Overcome Roadblocks
Following the meeting, a task force was formed to address the challenges surrounding the project. Within three months, local and land-related issues were resolved paving the way for the plant’s revival. The successful coordination between the state government and the Hinduja Group demonstrated the power of collaboration in overcoming obstacles and driving industrial growth.
A Modern Facility with a Focus on Sustainability
The newly inaugurated plant is a testament to Ashok Leyland’s commitment to innovation and sustainability. In addition to producing diesel buses the facility will manufacture electric buses, double-decker buses and low-floor buses with advanced features. These vehicles are designed to meet global quality standards and cater to the evolving needs of public transportation systems.
With orders already in place, the plant’s production capacity is fully booked through October 2025. This strong demand reflects the growing preference for Ashok Leyland’s reliable and eco-friendly vehicles.
A Boost for Andhra Pradesh’s Economy
The plant is expected to create thousands of direct and indirect jobs, providing a significant boost to the local economy. It also positions Andhra Pradesh as a hub for advanced manufacturing and green mobility solutions. Ashok Hinduja, Chairman of the Hinduja Group, expressed optimism about further investments in the state, citing its skilled workforce and thriving tech-driven industries as key advantages.
Ashok Leyland: Driving India’s Green Mobility Revolution
Ashok Leyland, a flagship company of the Hinduja Group, is one of India’s leading commercial vehicle manufacturers and the fourth-largest bus manufacturer in the world. Known for its diverse portfolio of trucks, buses, defense vehicles, and power solutions, the company has been at the forefront of technological innovation in the automotive sector.
With a strong focus on alternative fuel and electric mobility solutions, Ashok Leyland is playing a pivotal role in shaping India’s transition to sustainable transportation. The inauguration of the Vijayawada plant marks another milestone in the company’s journey towards a greener and more efficient future.
Key Highlights of the Project
- Location: Malavalli, 40 km from Vijayawada, Andhra Pradesh.
- Investment: Significant capital infusion by Ashok Leyland.
- Capacity: 2,400 buses annually in Phase 1, scaling up to 4,800 units.
- Products: Diesel buses, electric buses (Switch Mobility), double-decker buses, and low-floor buses.
- Sustainability: Focus on eco-friendly manufacturing and renewable energy integration.
Conclusion
The inauguration of Ashok Leyland’s Vijayawada plant is a landmark achievement for both the company and the state of Andhra Pradesh. After years of delays, the project’s revival underscores the importance of persistence, collaboration, and a shared vision for sustainable growth.
As the plant begins operations, it is poised to transform the region’s industrial landscape, create employment opportunities, and contribute to India’s green mobility revolution. This success story serves as an inspiration for future projects and reaffirms Andhra Pradesh’s position as a preferred destination for investment and innovation.
