Ashok Leyland to invest Rs 400 crore in new models

Leading commercial vehicles maker and Hinduja Group flagship Ashok Leyland said it would invest Rs 400 crore over the next two years in developing new products, including left-hand-driving trucks.

"We are coming up with a new product every six months, so the next product would be launched in April or May next year. Ashok Leyland would invest Rs 400 crore on new models in the next two years. The new products are also targeted for export markets", Nitin Seth, president (light commercial vehicles), Ashok Leyland Ltd.

Presently, Ashok Leyland exports five per cent of its total volumes. The vehicles are primarily exported to Russia and Ukraine.

The



company is working on left-hand-driving commercial vehicles to tap the potential export markets in Gulf countries and Africa.

"Globally, 80 per cent of the market for commercial vehicles is left-hand-driving. We are eyeing the Gulf Cooperation countries like Saudi Arabia and Qatar as well as Africa for exports of light commercial vehicles (LCVs). The market size for the two regions is estimated at 800,000 units annually and we have already started working on left-hand-driving vehicles to cater to this demand", Seth said.

Ashok Leyland sells around 40,000 LCVs annually. Such vehicles are manufactured at its Hosur facility in Bengaluru which has an annual capacity of 50,000 units.