Moving ahead with longstanding strategy to become a global player.

Indian commercial vehicle (CV) manufacturer Ashok Leyland plans to set up two assembly plants in Africa and double the capacity at its assembly facility in the United Arab Emirates (UAE) this year as part of its global expansion strategy, according to a report by the Press Trust of India. In a statement, Ashok Leyland managing director (MD) Vinod K Dasari said, "We are looking at a couple of smaller assembly plants in Africa. We haven't identified the location yet." Each assembly unit is estimated to require investment of INR400-500 million (USD5.8-7.4 million). Commenting on the company's expansion plans in the UAE, Dasari said, "We were doing four units a day, which has been increased to 12. By the end of 2016, we will double it to 24 units a day."

Significance: Ashok Leyland considers the Middle East and Africa region to be an important part of its strategy to enhance its international operations. By setting up assembly plants in Africa, the automaker is moving ahead with its longstanding strategy to become a global player and boost exports. Demand in the Africa region is expected to grow following the execution of large infrastructure projects to improve road networks, which are likely to boost trade. In January, Ashok Leyland won a contract worth USD50 million from Zimbabwe to supply 680 vehicles and spare parts. It also won a contract to supply 3,600 trucks and buses to the government of Côte d'Ivoire. Meanwhile, Ashok Leyland opened its facility in Ras al-Khaimah (UAE) in December 2010. The factory is a joint-venture (JV) between Ashok Leyland, the flagship company of India's Hinduja Group, and UAE's Ras Al Khaimah Investment Authority (RAKIA). The latest move to boost capacity at the UAE facility is an important step to reinforce the company's presence in the Middle East. It was also reported last year that the company planned to open a plant to assemble buses in Dammam.

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