Ashok Leyland in talks to set up 2nd overseas assembly unit

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26 Aug, 2025 12:21

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Hinduja Group flagship company Ashok Leyland is in the process of setting up its second overseas assembly unit and has begun talks for a local partner, a top company official said on Thursday. "We are working closely with a local partner. We are looking for an assembly unit in Nigeria, Senegal and Kenya. Place is not yet decided. Investment may be up to Rs 50 crore," Ashok Leyland, CFO, Gopal Mahadevan told reporters. Declining to elaborate he said, "Our plan is to set up an unit initially to assemble smaller vehicles." Once the new assembly unit becomes operational, it would be the second for the commercial vehicle major as it already has a similar assembly unit in United Arab Emirates. Responding to a query, he said the unit was expected to come up by this financial year. On company's performance for the June quarter, Mahadevan said "it has been reasonably satisfying performance". During the quarter ended June 30, Ashok Leyland's sales improved by 45 percent to 18,600 units from 12,819 units sold during the same period last year.

"Industry volume grew by 23 percent for the quarter ending June 30, 2015 to 62,076 units from 50,375 units sold during the same period of previous year", he said. Ashok Leyland reported a standalone net profit of Rs 159.31 crore for the quarter ended June 30. It had posted a net loss of Rs 47.95 crore for the same quarter last year.

To a query on capital expenditure plans, Mahadevan said the company was able to stick to the planned Rs 500 crore, which include for capital expenditure plans and investments. "We are well within that (Rs 500 crore) range", he said, adding the company has undertaken an exercise to improve cost and improve operational efficiency. "We are working on material design. We are working on whether the design of vehicle can be optimised. Entire manufacturing process has been streamlined," he added. Asked whether the company had managed to increase market share with increase in sales and performance in Q1 of 2015, he said, "We have gained market share in all regions.

The growth of industry has been in multi-axle vehicles." On exports front, he said the company was working on it, making to be third contributor in terms of revenues over the next three to five years. "We are working on it. Some of the key markets we are looking at is SAARC, Middle East, Africa, ASEAN and later in South America," he said.

On the joint venture with Optare Plc and construction equipment maker John Deere, he said, "Ashok Leyland was looking at turn around with the joint venture with Optare. At the moment, performance (of the companies) is not great." On joint venture with John Deere he said, "We are looking at all options to improve it. That (joint venture) is not doing well."