Ashok Leyland has opened its new manufacturing unit in the United Arab Emirates (UAE), which was set up as a joint venture between the Hinduja group firm and the Ras Al Khaimah Investment Authority. The $50 million new unit will cater to markets in the Gulf Cooperation Council, Africa and Europe.
Sheikh Saud Bin Al Qasimi, Supreme Council member and ruler of Ras Al Khaimah inaugurated the facility, which will spread over in 100,000 sq m with a built-up area of 20,000 sq m. The factory will have an initial annual capacity of 2,000 buses and trucks, according to a company release.
Total investment in the new plant will be $ 50 million, out of which $ 20 million has been already invested, the company said.
“For the Hinduja group, this is an important step in reinforcing our presence in the Middle East”, said Srichand P Hinduja.
R Seshasayee, managing director, Ashok Leyland, said that the facility was an important building block in the company's quest to be a global player. “The company has a dominant position in the popular bus market of the Gulf region and therefore it was only natural for us to set up a manufacturing base closer to our customers."
The European brand of trucks, currently produced at Prague-based Avia Ashok Leyland Motors, would be produced at the
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Ras Al Khaimah plant. The D-Line series of Avia trucks will complement Ashok Leyland’s medium and heavy-duty trucks, in serving the traditional markets of Africa, UAE and neighbouring regions, the company said.
The launch models for the market are the D75-140, a 7.5 tonner powered by a 140 hp engine and the D120-180 (12 tonner, 180 hp engine), with wheel base options. Avia trucks would be the first in GCC to offer brake systems as per EU standards in the 7.5 tonne category.