Ashok Leyland Ltd. announced on October 16, 2025, that it has secured a ₹668.76 crore order for 1,937 buses from the Tamil Nadu government. The order was awarded by the Institute of Road Transport, Tamil Nadu, following the regular tender process.
Order Details
- Total buses: 1,937 units
- Specifications: AIS 153 compliant, BS-VI diesel-fueled chassis, low-floor fully-built vehicles
- Delivery Schedule:
- 1,701 buses: BS VI-diesel chassis, low-floor fully-built, to be delivered between October 2025 and March 2026
- 236 buses: Semi-low floor diesel BS VI fully-built, to be delivered by January 2027
The buses will be deployed across all Tamil Nadu State Transport Undertakings, enhancing public transport capacity in the state.
Focus on Electric Vehicle Supply Chain
Ashok Leyland is also focusing on localising its electric vehicle (EV) supply chain, particularly in the battery segment. The company plans to invest around ₹5,000 crore to reduce EV battery costs, which account for 40–50% of an electric bus or truck’s total cost.
“Our next step is to localise the supply chain of electric vehicles. Reducing battery costs is critical to accelerate adoption of electric trucks and buses,” said Shenu Agarwal, MD & CEO, Ashok Leyland.
Capex and Market Outlook
- FY26 Capex: Expected to exceed ₹1,000 crore
- Industry Demand: Ashok Leyland expects truck demand in FY26 to surpass initial industry growth projections of 3–5%, signalling a positive outlook for the commercial vehicle segment.
This order and the EV supply chain initiatives underline Ashok Leyland’s commitment to modernising fleet operations and driving sustainable mobility in India.
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