India’s Ashok Leyland to set up Saudi auto plant
- Plans Middle East expansion
- Plant’s location and capacity undisclosed
- Ashok Leyland is world’s No.4 bus maker
Indian auto manufacturer Ashok Leyland is setting up a bus and truck assembly plant in Saudi Arabia, the Arab world’s largest economy, as part of a Middle East expansion plan.
Ashok Leyland UAE, a wholly owned subsidiary of Ashok Leyland, has established Ashok Leyland Saudi Company, also a fully owned unit.
In a statement, Ashok Leyland said it had invested SAR500,000 ($132,000) as initial share capital to create the Saudi unit.
The company has received regulatory approval from Saudi Arabia’s ministries of investment and commerce. The facility aims to serve domestic and export markets.
The plant’s location and production capacity were not disclosed.
Ashok Leyland, the flagship brand of India’s Hinduja Group, has operated an assembly plant in Ras Al Khaimah, a northern emirate of the UAE, since 2010.
The Saudi facility will help the Indian company expand its footprint in the Middle East and North Africa to 13 countries by 2030, up from its current presence in seven.
Further reading:
- Mobility market growing in race to reduce congestion
- GCC auto manufacturing waits to get out of first gear
- India and Saudi Arabia’s common bonds
Ashok Leyland is the world’s fourth-largest bus manufacturer, operating in 50 countries, according to its website.
The company has its headquarters in the southern Indian state of Tamil Nadu and is listed on the Bombay and national stock exchanges. It has nine manufacturing plants – seven in India, one in the UAE and one in Leeds, the United Kingdom.
Earlier this month the company reported a 7 percent year-on-year increase in net profit to INR7.6 billion ($84.6 million) for the second quarter ended September 20. Revenue rose 9 percent annually to INR105.4 billion.
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