Ashok Leyland wins order worth ₹669 crore for 1,937 buses from Tamil Nadu

Ashok Leyland Ltd. on Thursday, October 16, said it has won an order worth ₹668.76 crore for 1,937 buses from the Tamil Nadu government.

The company won the order, awarded by the Institute of Road Transport, Tamil Nadu, post the regular tender process. It has deliver 1,937 business that are AIS 153 compliant, contain BS-VI diesel fueled chassis, and are low floor fully-built. The vehicles will be used for operations by all Tamil Nadu State Transport Undertakings.

A total of 1,701 BS VI-diesel chassis and low floor fully-built busses are to be delivered from October 2025 to March 2026. Meanwhile, 236 semi-low floor diesel BS VI fully-built buses are to be delivered by January 2027.

Last month, the company said it plans to localise the supply chain for electric vehicles (EVs), particularly in the battery segment, where it may invest around ₹5,000 crore.

"Our next step is now looking at localising the supply chain of the electric vehicles. 40 to 50% of the cost of an electric truck or a bus comes from the battery. It is extremely important that we reduce that cost to move the adoption of trucks and buses much faster than what it is," the company's MD and CEO Shenu Agarwal said.

While precise growth projections for FY26 remain uncertain, Ashok Leyland expects demand to surpass initial industry expectations of 3–5% growth in trucks.

It has also stepped up its overall capex, with spending in FY26 expected to cross ₹1,000 crore.

Ashok Leyland shares were trading 1.5% up at ₹137.66 apiece around 12.35 pm on Thursday. The stock has gained 28.4% in the last six months.

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