Azad India Mobility has taken a significant step towards expanding its electric vehicle production capabilities. The company's board has given its approval for a strategic 5-year lease agreement with Azad Coach Builders, securing a facility in Bengaluru that will be dedicated to the manufacture of electric buses.

Key Details of the Lease Agreement

Strategic Implications

This lease agreement marks a crucial development for Azad India Mobility, establishing the operational framework for the company's electric bus production activities. By securing a dedicated manufacturing facility, the company is positioning itself to capitalize on the growing demand for electric public transportation solutions in India.

Focus on Electric Bus Production

The decision to lease a facility specifically for electric bus manufacturing underscores Azad India Mobility's commitment to the electric vehicle sector. This move aligns with the broader trend of automotive companies transitioning towards more sustainable and environmentally friendly transportation options.

Collaboration with Azad Coach Builders

The partnership with Azad Coach Builders for this lease agreement suggests a potential synergy between the two companies. Azad Coach Builders, likely experienced in bus manufacturing, could provide valuable expertise or resources to support Azad India Mobility's foray into electric bus production.

Looking Ahead

As Azad India Mobility prepares to commence operations at this new facility, industry observers will be keen to see how this development impacts the company's production capacity and market position in the electric bus segment. The success of this venture could have significant implications for both the company's growth and the broader adoption of electric buses in India's public transportation system.

Azad India Mobility Limited has taken a significant step towards expanding its presence in the electric mobility sector. The company has entered into a 5-year lease agreement with Azad Coach Builders Private Limited to produce electric buses in Bengaluru, marking a strategic move in India's growing green mobility market.

Lease Agreement Details

The Board of Directors of Azad India Mobility approved the lease deed in a meeting held on September 26, 2025. The agreement, which takes effect from October 1, 2025, covers the lease of land, plant, and machinery situated at Mysore Road, Seshagirihalli, Bengaluru 562109.

Key points of the lease agreement include:

• Duration: 5 years, with the possibility of extension by mutual agreement
• Area: 8,094 square meters
• Monthly Rent: ₹25.50 lakh, subject to a 5% annual escalation
• Purpose: Manufacturing of bus body components, assembly of manufactured and imported bus components, and production of fully functional electric buses

Strategic Implications

This lease agreement is a crucial part of Azad India Mobility's strategy to establish itself as a major player in India's accelerating green mobility transformation. The facility provides several advantages:

• Production Capacity: The world-class, government-approved industrial site is tailored for electric bus production, with a capacity of up to 1,500 units annually.
• Operational Control: The company gains uninterrupted access and rights to make infrastructure modifications, allowing for greater flexibility in production.
• Legal Certainty: Full legal protections enable the company to focus on innovation and large-scale market expansion.

Related Party Transaction

It's worth noting that this lease agreement falls under the category of a Related Party Transaction. Mr. Bupinder Singh Chadha and Mr. Chamjit Singh Chadha are common directors in both Azad India Mobility Limited and Azad Coach Builders Private Limited. However, the company has stated that the transaction is being conducted at arm's length.

Company Outlook

The move into electric bus production aligns with the growing demand for sustainable transportation solutions in India. By securing this dedicated manufacturing space, Azad India Mobility is positioning itself to capitalize on the increasing adoption of electric vehicles in the public transportation sector.

As the electric mobility landscape continues to evolve, investors and industry observers will be keenly watching how Azad India Mobility leverages this new production facility to strengthen its market position and contribute to India's green mobility initiatives.