ASHOK LEYLAND TO STARTS OPERATIONS IN UAE

India’s leading manufacturer of buses and trucks enters the UAE with a view to explore global markets

Wshok Leyland, the Hinduja Group flagship in India has signed an MOU with the Ras Al Khaimah Investment Authority (RAKIA) for setting up the first phase of a bus assembly unit that will be eventually upgraded to a vehicle assembly plant (for trucks and buses) in the second phase. The agreement was signed by R Seshasayee, Managing Director, Ashok Leyland, and Dr Khater Massaad, CEO of RAKIA, a public body established by the Government of Ras Al Khaimah.

The unit, with an initial annual capacity for 1,000 buses of international styling, manufacture and quality, will start operations as a bus body assembly using Ashok Leyland chassis and bus body CKD kits sent from India (including Irizar TVS). The facility, to be built with an initial investment of $5 million, will include a state-of-the-art paint plant for bus bodies. The unit will be managed and operated by Ashok Leyland. To start with, it will have a 450-strong workforce and will commence operation in an 2007.

The unit will be provided an Industrial License that will enable duty free import of vehicle kits and duty free export of finished vehicles to GCC and the Middle East.

Ashok Leyland reportedly enjoys a market share in excess of 60 per cent in Dubai’s standard bus market, with exports to the region set to cross 1,500 vehicles per annum.

“The proposed unit will allow local value addition, close to a growing market for Ashok Leyland. Customers stand to benefit through better finish and timely delivery as we can avoid shipping of finished products. The vehicle assembly facility in UAE is in line with our practice of favouring local value addition in our major export markets”, said Mr R Seshasayee.

“As a strategic window to Gulf Cooperation Council (GCC) and neighbouring countries, we plan to scale up operations of the unit in phases and envisage its development into a full-fledged assembly unit for complete trucks and buses,” added Seshasayee.

Eight out of ten metro state transport buses in India are from Ashok Leyland. At 70 million passengers a day, Ashok Leyland buses carry more people than the entire Indian rail network!

From 18 seater to 82 seater double decker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous special application vehicles to diesel engines for industrial, marine and genset applications, Ashok Leyland offers a wide range of products.

For over five decades, Ashok Leyland has been the technology leader in India's commercial vehicle industry, moulding the country's commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms.

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