In 2018, Ashok Leyland, the fifth-largest bus manufacturer globally, unveiled plans to establish a new factory near Vijayawada in Andhra Pradesh. The project was intended to produce 4,800 buses annually, with the foundation stone laid in March 2018. However, due to a change in the state government, construction was halted, and progress on the factory came to a standstill.
In December 2024, Nara Lokesh, Andhra Pradesh’s Minister and chairman of the cabinet committee on job creation, took initiative after learning of the delay. He invited the Hinduja family for a breakfast meeting in Hyderabad on December 22, where discussions were held to resolve the roadblocks. As a result, efforts to restart the project were successfully coordinated, leading to the official inauguration of the bus manufacturing plant on March 19, 2025.
The project originally proposed by Ashok Leyland was stalled after the 2019 election, when Y.S. Jagan Mohan Reddy’s YSR Congress Party took power. Local and administrative hurdles prevented the plant’s development during the following years, despite the initial foundation being laid in 2018 under the leadership of then-Chief Minister N. Chandrababu Naidu. In response to the delays, Lokesh engaged with the Hinduja Group to find a solution.
During the breakfast meeting, Lokesh outlined the state’s commitment to renewable energy and its efforts to foster a favorable investment environment for electric vehicles (EVs). He emphasized the state’s plans to develop 160 GW of renewable energy in the next five years, which positioned Andhra Pradesh as a prime location for such investments. A task force was formed to address the challenges surrounding the site, and within three months, local and land-related issues were resolved, clearing the way for the plant’s revival.
The new facility, located in Malavalli, 40 km from Vijayawada, spans 75 acres and incorporates state-of-the-art manufacturing technologies to meet global quality standards. The plant will produce Ashok Leyland’s diesel buses and electric buses under the Switch Mobility brand.
The facility is expected to manufacture 2,400 buses annually in its first phase, with plans to expand to 4,800 units. The plant will also focus on manufacturing electric buses, double-decker buses, and low-floor buses with advanced features. With orders already in place, the plant’s capacity is fully booked through October. Ashok Hinduja, Chairman of the Hinduja Group, expressed optimism about further investment in Andhra Pradesh, citing the state’s skilled workforce and growing tech-driven industries as key factors for future growth.
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. With a diverse portfolio of trucks, buses, defense vehicles, and power solutions, Ashok Leyland plays a crucial role in shaping India’s transportation landscape. The company is known for its technological innovations, including alternative fuel and electric mobility solutions, ensuring efficient and sustainable transportation. With a strong global footprint and a commitment to green mobility, Ashok Leyland continues to drive progress in the commercial vehicle industry.
