Avia Ashok Leyland (AAL) is in talks with a US-based company to enter the American truck market. If talks are successful, the entry could be in 2014. “So far, talks are ongoing as to whether or not we will structure this company as a joint venture or a third party customer or a 100 percent-owned company in the US,” says Tomáš Jiricka, chief operating officer, AAL.
The company already has an indirect presence in USA through Smith Electric Vehicles, the world’s largest electric commercial vehicle maker, which sources vehicle kits from it. AAL plans to expand its truck range as also enter the bus segment.
Speaking to Autocar Professional at the IAA commercial vehicles trade fair held in Hanover, Germany, in mid-September, Dheeraj Hinduja, chairman, Ashok Leyland, said: “We are now looking at introducing a 15-tonner in 2013. As that gets established, we are looking at possibilities going over 15, so you can have more critical mass in volume.”
The company is entering new markets in Europe, as well as in Asia. It entered Russia in 2010, and is now targeting Germany, Turkey, UAE and Bahrain. Ashok Leyland has a bus assembly plant in Ras al-Khaimah. Pilot production of Avia trucks started in July this year.
AAL is also set to enter the bus segment with a 35-seater bus, scheduled for a November launch in Prague. With growing volumes and the new business developments, Ashok Leyland expects AAL to break-even in 2103.
The Prague-based Avia was acquired by Ashok Leyland in 2006. Ashok Leyland recently completed a three-year turnaround initiated at Optare in the UK.
Ashok Leyland says it is ready to take on new competition
With the entry of Daimler’s BharatBenz, competition in the Indian commercial vehicle landscape is set to reach a new high. Hopefully, the same will be seen in the efficiency levels of the trucks and buses.
Ashok Leyland, along with Tata Motors, will feel the heat the most. Dheeraj Hinduja, chairman of Ashok Leyland, feels his company is well prepared for increased competition and growth. “The competition is immense but I see Ashok Leyland going stronger and stronger because we have, over the last five years, since our split from Iveco, invested a lot in technology. We know the Indian market well, we know the customers well and just like the new competitors I think the key thing (for success) in market is going to be the distribution network. Today we have over 450-500 touchpoints which is constantly expanding as well,” says Hinduja.
After BharatBenz, Ashok Leyland will have new rivals in the form of Scania and Foton. DAF is also learnt to be waiting in the wings.
SUMANTRA BAROOAH