Big Investment in Ashok Leyland’s New Electric Bus Factory
Indian heavy vehicle giant Ashok Leyland announced a colossal ₹1,000 crore investment to establish its seventh factory in the country, focused exclusively on manufacturing electric buses. Located in either Noida or Greater Noida in the Delhi-NCR region, the factory aims to produce 2,500 electric buses per year initially. As demand for electric buses increases, the plant’s production capacity could rise to as many as 5,000 units annually.
Joint Venture Between Eicher Motors and Volvo Lands Massive Order
A joint venture between Eicher Motors (makers of the iconic Royal Enfield motorcycles) and Volvo, known as VECV, has recently secured a substantial order of 1,000 electric buses from NueGo, an intercity bus service provider. NueGo operates in 30 cities across India and is keen on expanding its operations in a market where competition is steadily intensifying.
Benefits for NueGo: Lower Operating Costs and Sustainable Operations
The addition of electric buses will not only help NueGo enhance its business competitiveness but also significantly reduce operating costs per kilometre. This move is seen as a strategic advantage for NueGo in a sector that is becoming increasingly competitive.
Long-Term Commitment for Electric Bus Supply
GreenCell Mobility and VECV have stated that they’ve entered into an agreement to supply 1,000 electric buses over the next five years. The two parties have formally signed an agreement, signalling a long-term commitment to fuel alternative solutions and reduce carbon emissions in the country.
Positive Impact on India’s EV Market
This combined development can be seen as groundbreaking for India’s electric vehicle market. A joint venture between Eicher Motors and Volvo, along with GreenCell Mobility, will continue to strengthen their relationships to assist in reducing the country’s carbon emissions further.
| Feature | Details |
|---|---|
| Ashok Leyland Investment | ₹1,000 Crore |
| Initial Production Capacity | 2,500 electric buses/year |
| Potential Capacity | Up to 5,000 electric buses/year |
| VECV Order | 1,000 electric buses from NueGo |
| Agreement Duration | 5 years |
| Operating Cities for NueGo | 30 cities across India |
