New Delhi, Apr 7: Commercial vehicle major Ashok Leyland is looking to set up more assembly plants overseas, including the CIS region and African countries, as part of plans to scale up its global operations, a top company official said.
The company is banking on its new range of medium and heavy commercial vehicles (M&HCV) and light commercial vehicles (LCVs) to help it enter new regions beyond its traditional stronghold such as the Middle East, SAARC countries and pockets of Africa.
The Chennai-based Hinduja flagship firm is in the process of developing a new modular platform on which it plans to roll out its future medium and heavy products from next year.
The company, which has earmarked a capex of Rs 1,500 crore for various projects during the current fiscal, is also working on a separate platform for light commercial vehicles (LCVs). The company expects to roll out the new range of products from April next year.
“In some markets where volumes are promising we can also put some assembly plants. But these would be established in a very cost effective manner, rather putting up large manufacturing facilities,” Ashok Leyland Chairman Dheeraj Hinduja said in an interview.
When asked if the company has identified some of the countries where it would like to set up such units, he said: “In Africa, we have looked at Kenya and Ivory Coast. Both these countries are quite significant. We are considering some of the CIS countries as well.”
Hinduja said the company in some places might even consider partnerships whether it is local body builders or people who might already have existing units.