The proposed unit will allow local value addition, close to a growing market for Ashok Leyland. Customers stand to benefit through better finish and timely delivery as we can avoid shipping of finished products, R Seshasayee, MD of Ashok Leyaland, said.
As a strategic window to Gulf Co-operation Council (GCC) and neighbouting countries, we plan to scale up operations of the unit in phases and envisage its development into a full-fledged assembly unit for complete trucks and buses, he added.
The assembly unit will initially have a capacity for 1000 buses of international styling, manufacture and quality. It will start operations as a bus body assembly using Ashok Leyland Chassis and bus body CKD kits (including Irizar TVS) sent from India.
The facility will include state-of-the-art paint plant for bus bodies and the plant will be managed and operated by Ashok Leyland.
Ashok Leyland is reported to have a marketshare of over 60% in Dubai's standard bus market, with exports to the region set to cross 1500 vehicles per annum.
The assembly will be provided an industrial licence that will enable duty-free import of vehicle kits and duty-free export of finished vehicles to GCC and the Middle East.
