Ashok Leyland shares rose over 2% as it plans to set up an Electric Vehicle manufacturing plant in Uttar Pradesh (UP). This decision was influenced by Chief Minister Yogi Adityanath’s invitation to Fortune 500 companies to invest in Uttar Pradesh.

According to the company’s regulatory filing, the commercial vehicle manufacturer company has laid the foundation stone for a new integrated commercial vehicle plant focused on green mobility in Uttar Pradesh.

The plant will be spread over 70 acres and will be Ashok Leyland’s most modern and green factory worldwide, focusing on the production of electric buses and other vehicles powered by alternative fuels.

Once operational, the plant will initially have the capacity to produce 2500 vehicles per year, with plans to expand its capacity to 5000 vehicles annually over the next decade.

Ashok Leyland has a service centre every 75 km on highways, with a 4-hour response time and 48-hour repair promise. Their sales team is equipped to fulfil customers’ needs with technology-enabled engagement processes and knowledge of product range. They manage 12 driver training institutes and have trained over 1.8 million drivers.

In the December quarter, Ashok Leyland’s net profit, i.e. profit after tax (PAT), increased by 60.5% year-on-year to Rs 580 crore, driven by robust demand for its products in the medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments.

At 12:33 pm, shares of Ashok Leyland were trading at Rs 173.65, 0.40% higher than its previous close on the National Stock Exchange (NSE).