Hinduja Group Revives Bus Factory in Andhra Pradesh

Vijayawada, Mar 21 (PTI) Ashok Leyland, the world's fifth-largest bus manufacturer, in 2018 announced plans to set up a new factory near Vijayawada in Andhra Pradesh. The foundation stone for the unit, which was expected to produce 4,800 buses annually, was laid in March 2018 but work stalled due to a change in the state government.

Upon finding out about the stalled project, Nara Lokesh, Andhra Pradesh Minister and chairman of the cabinet committee on job creation, invited the Hinduja family to Hyderabad for a breakfast meeting on December 22, 2024. Rest is history.

Roadblocks were cleared and the bus manufacturing facility was inaugurated on March 19.

Sources with knowledge of the matter said Hinduja Group firm Ashok Leyland had proposed the bus manufacturing facility in 2018. The then chief minister N Chandrababu Naidu had laid the foundation stone for the facility on March 31, 2018.

But a year later, Naidu lost power and YSR Congress Party (YSRCP) led by Y S Jagan Mohan Reddy came to power.

Thereafter, the project was stalled due to various local and administrative issues. In five years of Jagan Mohan Reddy government, the project could not be commissioned.

Sources said on learning of the delayed project, Lokesh called for a meeting with the Hindujas.

Ashok Hinduja, Chairman of Hinduja Group of Companies (India), and Dheeraj Hinduja, chairman of Ashok Leyland, attended the breakfast meeting which Lokesh had called to assuage them and give comfort about the state's revival as an investment destination, sources said.

In the breakfast meeting at his residence, Lokesh spoke about attractive possibilities for electric buses across India and how Andhra Pradesh presents the best possible investment destination. Lokesh also spoke about the government's thrust on renewable energy and how 160 GW would be developed over the next 5 years.

Specifically, Lokesh took note of the challenges at the site and how this project can be re-started, they said, adding that a task force was put in place and all outstanding local issues and land-related issues were resolved over the last 3 months.

The brand-new facility was inaugurated on March 19, 2025. Fittingly, the facility was inaugurated by Nara Lokesh, with the senior leadership of the Hinduja group Ashok Hinduja (Chairman, Hinduja group India) and Shom Ashok Hinduja (President of Alternative Energy & Sustainability) in attendance.

This turnaround was scripted by Nara Lokesh, and left the Hinduja group impressed. Speaking on the occasion, Ashok Hinduja said, "Hinduja Group have had a long and productive relationship since the days of undivided Andhra Pradesh under dynamic Chief Ministers, NTR Garu and respected Chandrababu Garu, the architect of the first technology-governed state in India. We greatly look forward to expanding Hinduja Group's investment in Andhra - in power, mobility, manufacturing and other service sectors like BFSI. Andhra has a great pool of human capital, particularly in the new and emerging hi-tech and digitally driven enterprises. The dynamism we see today in Andhra makes us very optimistic for investing more in the state".

Situated at Malavalli, 40 km from Vijayawada, this modern plant spans 75 acres and integrates advanced manufacturing technologies to uphold world-class quality standards.

The plant is designed to manufacture the complete range of Ashok Leyland diesel buses and Switch Mobility's electric buses.

The facility with an annual production capacity of 4,800 buses, features Nalanda, a modern Learning Center, and an advanced Service Training Center.

The plan will produce 2,400 buses a year in phase one, which will be scaled to 4,800 buses subsequently.

Electric bus body building as well as double-decker buses and low-floor buses with advanced features will be manufactured at the plant. Ashok Leyland has reportedly received orders and its capacity is fully booked till October.