The Mozambican government has invited Indian manufacturer Ashok Leyland to establish a bus production unit in the country, as part of a broader strategy to develop a national sustainable mobility and public transport industry.

The invitation was extended by the Minister of Transport and Logistics, João Matlombe, during a meeting with company representatives on the sidelines of the SAGARMANTHAN – Great Oceans Dialogue conference held in New Delhi, India, according to a ministry statement. "The company's representative expressed interest in installing a bus production unit in Mozambique," the statement reads, highlighting opportunities linked to the country's domestic natural gas and electricity production.

According to the Ministry of Transport and Logistics (MTL), Matlombe argued that the investment could help expand public passenger transport in municipal areas and improve connectivity between rural zones with agricultural and tourism potential and major urban centres. He also encouraged the company to submit proposals for converting diesel-powered buses to natural gas, with the aim of reducing the country's exposure to fluctuations in international fuel prices.

The Indian manufacturer's interest comes as the MTL actively seeks private partners to install and operate an electric bus assembly plant for public transport. According to an expression of interest notice published in September and reviewed by Lusa, the future facility is intended to reduce dependence on the import of fully assembled buses, promote the energy transition, create skilled employment, and develop local industrial capabilities.

Under Resolution No. 55/2026 of 17 July, the government intends to select, by 19 October, a private investor, consortium, or strategic partner to design, finance, install, equip, operate, and develop the industrial unit through a public-private partnership. The project is expected to build national capacity in 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 unit could reduce bus procurement costs by approximately 40%, while also driving industrialisation, technology transfer, job creation, and import substitution.

In March, the government also disclosed that Chinese firm SG Automotive Group Co. was studying the installation of a vehicle assembly unit in Mozambique, including electric buses, with the potential to create up to 3,000 jobs.

A member of the Indian conglomerate Hinduja Group, Ashok Leyland is the second-largest commercial vehicle manufacturer in India, the fourth-largest bus manufacturer in the world, and one of the leading global truck producers, with a presence in more than 50 countries. According to corporate information published by the company, as of March 2026 it recorded revenues of US$9.68 billion and operates an international network of assembly units, regional offices, and industrial and commercial support infrastructure.

The manufacturer has also been investing in low-emission mobility solutions, including vehicles powered by natural gas, electricity, and hydrogen — areas that align directly with the strategy the Mozambican government has defined for the development of its national transport industry.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=551327