Ashok Leyland to invest USD 10 million to expand UAE plant

Tushar · 5th March 2016, 11:14

Ashok Leyland has announced the expansion of its plant in Ras Al Khaimah, UAE and has established a new design and training centre at the plant as well. The company will be making an investment of $10 million (approximately INR 66.99 crore) to satiate the demand in GCC (Gulf Cooperation Council) nations and is likely to expand the plant further to target African markets as well. The investment will triple its installed capacity to 6,000 units per year.

Apart from increasing the production of current models, the investment will also see Ashok Leyland introducing new models in the region including midi buses and trucks. Currently, the output of the RAK plant is 12 buses a day and the new investment will enhance this to 20 buses a day – apart from the production of trucks in the factory.

Ashok Leyland is the second largest commercial vehicle manufacturer in India and the fourth largest bus manufacturer in the world. The factory in Ras Al Khaimah is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA) and is the only certified local bus factory in the UAE and GCC region.

Ashok Leyland to invest USD 10 million to expand UAE plant-1.jpg

dracul · 5th March 2016, 11:29

A welcome move by AL. With a local production unit, AL had captured majority of low cost bus segment in the middle-east. Apart from 1618 truck AL doesn't have any other truck models in the offering.
It's high time they have to enter the tractor trailer market which will provide a low cost option for the operators.
There AVIA medium trucks did not have much takers any way. So apart from investment in the production, they have to market and position their products well. Their 1618/1518 trucks are a success in the water tanker segment, atleast in Qatar.

urzdeepu · 7th March 2016, 23:13

Awesome move by AL. We Indians really get proud when we see Desi brands in UAE market. And when it comes to school buses and economical transportation, AL is the king. Falcon is doing wonders in this market where as Eagle 816 the midi bus is also is not so bad numbers.
Its high time AL introduce RE buses and Tractors in this market and am sure there will be takers even from Govt sector.

silversteed · 11th March 2016, 10:07

Quote:

Originally Posted by urzdeepu

Awesome move by AL. We Indians really get proud when we see Desi brands in UAE market. And when it comes to school buses and economical transportation, AL is the king. Falcon is doing wonders in this market where as Eagle 816 the midi bus is also is not so bad numbers.
Its high time AL introduce RE buses and Tractors in this market and am sure there will be takers even from Govt sector.

Indeed. It's time AL launches the Captain series in markets such as the middle-east, with the higher power output Neptune engines.

5th March 2016, 11:14	#1
Tushar Senior - BHPian Join Date: Oct 2014 Location: Mumbai Posts: 1,152 Thanked: 8,574 Times	Ashok Leyland to invest USD 10 million to expand UAE plant Ashok Leyland has announced the expansion of its plant in Ras Al Khaimah, UAE and has established a new design and training centre at the plant as well. The company will be making an investment of $10 million (approximately INR 66.99 crore) to satiate the demand in GCC (Gulf Cooperation Council) nations and is likely to expand the plant further to target African markets as well. The investment will triple its installed capacity to 6,000 units per year. Apart from increasing the production of current models, the investment will also see Ashok Leyland introducing new models in the region including midi buses and trucks. Currently, the output of the RAK plant is 12 buses a day and the new investment will enhance this to 20 buses a day – apart from the production of trucks in the factory. Ashok Leyland is the second largest commercial vehicle manufacturer in India and the fourth largest bus manufacturer in the world. The factory in Ras Al Khaimah is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA) and is the only certified local bus factory in the UAE and GCC region.
	(5) Thanks

5th March 2016, 11:29	#2
dracul BANNED Join Date: May 2007 Location: kerala Posts: 71 Thanked: 37 Times	Re: Ashok Leyland to invest USD 10 million to expand UAE plant A welcome move by AL. With a local production unit, AL had captured majority of low cost bus segment in the middle-east. Apart from 1618 truck AL doesn't have any other truck models in the offering. It's high time they have to enter the tractor trailer market which will provide a low cost option for the operators. There AVIA medium trucks did not have much takers any way. So apart from investment in the production, they have to market and position their products well. Their 1618/1518 trucks are a success in the water tanker segment, atleast in Qatar. Last edited by dracul : 5th March 2016 at 11:35. Reason: corrections
	(2) Thanks

7th March 2016, 23:13	#3
urzdeepu BHPian Join Date: Sep 2009 Location: Thrissur Posts: 188 Thanked: 108 Times	Re: Ashok Leyland to invest USD 10 million to expand UAE plant Awesome move by AL. We Indians really get proud when we see Desi brands in UAE market. And when it comes to school buses and economical transportation, AL is the king. Falcon is doing wonders in this market where as Eagle 816 the midi bus is also is not so bad numbers. Its high time AL introduce RE buses and Tractors in this market and am sure there will be takers even from Govt sector.
	(1) Thanks