Ashok Leyland to make electric, hybrid buses in India

Vince Cable, UK Minister for Business and Vinod Dasari, MD, Ashok Leyland with Ashok Leyland's `Solo'- diesel version of the Optare, in Chennai on Wednesday ( October 15, 2014)
Photo : Bijoy Ghosh
To go with R. Balaji's report

Ashok Leyland will start manufacturing and marketing electric and hybrid buses in India from next year, in line with Prime Minister Narendra Modi’s ‘Make-in India’ campaign.

The company is looking to bring a range of vehicles from its U.K. arm Optare to India. It will be launching the Solo bus from Optare in its brand name in the Bus Expo in New Delhi early next year. Then, it will look at manufacturing electric and hybrid buses in India. Optare has been selling 100 electric buses a year in the U.K. “The electric and hybrid bus cost a lot of money (Rs.2-3 crore), and can run up to 200 km. They do not make economic sense by themselves unless the State comes forward to support in the form of subsidies,” Vinod Dasari, Managing Director of Ashok Leyland, said.

He said that capacity was not an issue. The company needed to invest in battery technology which required to be imported from the U.K., the U.S. or China, he pointed out.

Ashok Leyland has bus manufacturing facilities at Alwar and Tiruchi. The electric and hybrid buses would be made from these facilities, he said. The company was also considering making this buses at its Middle East facility, he added.

To a query on whether India is ready for electric and hybrid buses, he said, “20 years ago when we brought the CNG buses, there was no market in India. There was no CNG available, but it was the right thing to do for the country. We are the market leader, and we have to do things to lead.”

The company was discussing with various State governments for the electric and hybrid vehicles, Mr. Dasari also said. The company would also look to export these buses, he added.

Vince Cable, U.K. Secretary of State for Business, Innovation and Skills, along with a business delegation, visited the company’s facility in Chennai on Wednesday.

He said “The U.K. government is looking at electric vehicles as increasingly important as it helps in reducing the carbon emission.” Mr. Cable also said that the U.K. was looking for more collaboration with India in terms of manufacturing and education.