Ashok Leyland to Expand UAE Facility, Proposes 2 Plants in Africa
Published On Feb 04, 2016
Ashok Leyland, the second largest commercial vehicle manufacturer in India, is apparently planning to set up two assembly plants in Africa. Also, the company is already working towards doubling the capacity in Ras al-Khaimah, UAE this year.
The company will be investing INR 100 crore to establish the overseas commercial vehicle plants.
Speaking to the press Vinod K Dasari, Managing Director, Ashok Leyland, told, “We are looking at a couple of smaller assembly plants in Africa. We haven’t identified the location yet. Besides, we are also looking to double the capacity of our Ras al-Khaimah facility.”
Quoting on the investments on the foreign plants, he said that the company could invest INR 40-50 crore on smaller facilities.
Adding further on the UAE expansion, Mr. Dasari said, “We were doing four units a day, which has been increased to 12. By the end of 2016, we will double it to 24 units a day.”
He added that Ashok Leyland did better in 2015 and the company hopes to continue the pace in 2016 too.
Ashok Leyland registered 36 percent growth with 110,349 sold units in this fiscal over 81,386 sold units in the last fiscal year.
He further said that the light commercial vehicle sales are still a concern and is yet to be recovered.
Speaking on the issues with the partner Nissan he said that “what happens in any joint venture, yes there are issues.” However, he didn't confer the details. He refused to comment on the future with Nissan and said that the partnership is going on for the day, with the LCV Dost doing well. The company has showcased cargo vehicles Guru and Euro 6 tractor, and Sunshine school bus and a Hybrid Bus (Hybus) at Auto Expo 2016 media event today.