Ashok Leyland to invest Rs 67 crore in UAE plant

Domestic CV major Ashok Leyland today announced a significant manufacturing capacity expansion and an additional investment of US$ 10 million (Rs 67.11 crore) at its Ras Al Khaimah (RAK) plant in the UAE. 

The foundation stone for the plant’s capacity expansion was laid by Sheikh Saud Bin Saqr Al Qasimi, supreme council member and ruler of Ras Al Khaimah. The RAK facility is also slated to feature a new design and service training centre, marking commitment of the flagship brand of the Hinduja Group in UAE and the GCC region.

Apart from expanding production of current models, the CV-maker plans to introduce new models into the regional market, which will include mini-buses and trucks.

Commenting on the occasion, Vinod Dasari, managing director, Ashok Leyland said, “We are honoured to have His Highness at the ground breaking ceremony to expand our manufacturing facilities in Ras Al Khaimah. This plant is key for the supply of buses to address the needs of GCC countries, and with Ashok Leyland’s ambitious plans for Africa, we foresee further expansion of the facility. A pioneering hub for auto manufacturing, our plant has deepened economic and trade links between India and the UAE, and helped Ras Al Khaimah’s continued economic growth. Both direct and indirect employment is set to rise significantly with this increased capacity.”

The RAK plant, which was inaugurated in 2010, currently has a manufacturing capacity of 12 buses a day and the new investments are expected to enhance this to 20 buses – apart from the production of trucks from the factory. The company expects the plant to more than triple its annual installed capacity to 6,000 units a year.

“We are aiming to grow significant localization levels soon and towards this we are working very closely with RAKIA on creating an automotive cluster in Ras Al-Khaimah where our vendors will set up shops. We will be foraying into the value-premium segment of the automotive market of UAE and the GCC region this year as part of enhancing our product portfolio. This would be in addition to our predominant presence in the school bus segment of the UAE with a market share of over 70 per cent owing to our robust design and enhanced safety features,” explained Dasari. 

Ashok Leyland (UAE) LLC, the brand’s vehicle 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.