Ashok Leyland to Build First African Assembly Plant in Kenya

Indian CV major Ashok Leyland has played a significant role in terms of exports to African nations and has now decided to open an assembly plant in the continent. Kenya has been selected as the site of the company’s first ever assembly plant in Africa. Initially US $4-5 million would be invested which will be subsequently raised to US $10 million. Currently, the Kenyan market accounts for 4,000 units of truck sales each year and is expected to grow double in the next few years.

Ashok Leyland will assemble both buses and trucks at the plant. Commenting on it, Mr. Gopal Mahadevan, CFO, Ashok Leyland told BusinessLine reporters, “We have incorporated the company in Kenya. We are trying to get a local partner or we may do it ourselves. We are in the final stages of identifying the location and the plant is expected to be up and running in eight-nine months.” He further added, “The African markets are at present being addressed mostly by Chinese players. The Hinduja flagship has strong potential to establish its presence with its new range of cost-competitive trucks and buses. Kenya is a very strategic market for us and also a more appropriate centre geographically.”

Apart from Kenya, Ashok Leyland is also about to put another assembly unit in Bangladesh with one of its strategic partners in the next couple of months. The company has also grown in double digits in the domestic market. It has many orders from the foreign markets too, the most recent among them is a deal with the Malawi government for 500 vehicles which is expected to be closed soon.

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