The Mozambican government has invited Indian manufacturer Ashok Leyland to establish a bus production facility in the country, reinforcing its strategy to develop a domestic sustainable mobility and public transport industry.
The invitation was extended by Transport and Logistics Minister João Matlombe during a meeting with company representatives on the sidelines of the SAGARMANTHAN – Ocean Dialogue conference, held in New Delhi, India, according to a statement issued by the ministry and released on Saturday, 10 October.
“The company’s representative expressed interest in establishing a bus production facility in Mozambique,” the statement said, adding that the minister highlighted “the opportunities the country offers, particularly those linked to natural gas production and electricity, as favourable factors for the development of more sustainable transport solutions”.
According to the Ministry of Transport and Logistics (MTL), Matlombe argued that the investment could help expand public passenger transport in municipalities and improve connections between rural areas with agricultural and tourism potential and the main urban centres.
The minister also encouraged the submission of proposals to convert diesel-powered buses to natural gas, with a view to reducing Mozambique’s exposure to fluctuations in international fuel prices.
The Indian manufacturer’s interest comes at a time when the MTL is seeking private-sector partners to establish and operate an assembly plant for electric buses for public transport. The project aims to reduce imports, create skilled jobs, develop domestic industrial capacity and support the renewal of public transport fleets.
In a call for expressions of interest published by the MTL in September and consulted by Lusa, the government states that the planned industrial facility should help reduce dependence on imports of fully assembled buses, promote the energy transition and develop local industrial skills.
Under Resolution No. 55/2026 of 17 July, the government intends to select, by 19 October, a private investor, consortium or strategic partner responsible for the design, financing, installation, equipping, operation and development of the future industrial facility through a public-private partnership. The facility is expected to create domestic capacity for vehicle assembly, maintenance and adaptation, specialised technical training, the gradual integration of locally sourced components, and after-sales support for public and private operators in the transport sector.
The government estimates that establishing a local assembly facility could reduce bus procurement costs by around 40%, while also boosting industrialisation, technology transfer, job creation and import substitution.
In March, the government also revealed that Chinese company SG Automotive Group Co. was considering establishing a vehicle assembly facility in Mozambique, including for electric buses, creating up to 3,000 jobs.
Part of India’s Hinduja Group, Ashok Leyland describes itself as India’s second-largest commercial vehicle manufacturer, the world’s fourth-largest bus manufacturer and one of the leading global truck producers, stating that it operates in more than 50 countries.
According to corporate information published by the company itself, Ashok Leyland recorded a turnover of US$9.68 billion (€8.3 billion) in March 2026 and has an international network of assembly facilities, regional offices and infrastructure supporting its industrial and commercial operations.
The manufacturer has also been investing in low-emission mobility solutions, including vehicles powered by natural gas, electricity and hydrogen — areas that align with the strategy set out by the Mozambican government for the future development of the domestic transport industry.
Source: Lusa