Ashok Leyland may bring in a new equity partner soon. Sources say Swedish truck maker, Volvo is in final stages of talks to buy, what they call a 'significant stake' in Ashok Leyland, reports CNBC-TV18.

They said it may be also a complete buy out, which Dheeraj Hinduja, Vice Chairman of Ashok Leyland flatly denied. With new competitors like MAN and Navistar entering India, Volvo is looking at ways to strengthen its foot hold here. And an equity alliance with Ashok Leyland may be one way to do it.

When contacted, Managing Director of Ashok Leyland declined to comment and Volvo could not be contacted despite repeated attempts. Ashok Leyland sold 56,747 vehicles last year and Volvo sold 655 trucks in India.