Ashok Leyland eyes airport bus market

Ashok Leyland is planning a foray into the market for airport passenger buses. With an eye on a share of the airport bus market, Leyland has lined up three buses under the brand name Avion.

Leyland currently operates airport passenger buses for national carrier Air-India and would sign agreements for similar services with other aircraft carriers this year, Ashok Leyland Managing Director R Seshasayee told reporters. Leyland was also laying emphasis on offering a range of fully built vehicles, including buses and trucks this year, he added.

The company expects the first phase of its integrated manufacturing plant being set up in Pantnagar, Uttaranchal, to be complete by the second half of 2008-09. The second phase is expected to be complete by March 2010.

By the end of the second phase, Ashok Leyland expects to be rolling out 160,000 vehicles annually out of the Uttaranchal plant. The integrated plant would hugely augment Ashok Leyland's production muscle, Seshasayee said. A state-of-the art technology is being sourced from across the globe with layouts being made for lean manufacturing and automation at the upcoming plant, Seshasayee said.

At Prague-based AVIA, Ashok Leyland had succeeded in stabilising operations and an annual output of 1,400 vehicles was being targeted. At the integrated chassis and bus assembly plant at RAKIA, the company expected operations to kick off by March 2008, he added.