Indian bus and truck manufacturer Ashok Leyland is looking to increase its global reach, particularly in the BRIC countries of Brazil, Russia, India and China, by acquiring local companies.
According to Ashok Leyland parent Hinduja Automotive executive vice chairman V Sumantran, the company is currently evaluating certain proposals to that end.
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“Contemporary European product is not directly relevant in India,” said Sumantran. “And indeed, the big bus markets in the world are China, Russia, India and Brazil. Obviously, our strategy will be oriented toward that.”
The Indian manufacturer is not unfamiliar with overseas ventures, as evidenced by its three foreign ventures.
The company acquired a majority stake in Czech manufacturer Avia in 2006, which provided it with an entry point to the European market.
“This [Avia] gave us an entry into the medium-light vehicle segment in Europe. Its contemporary technology, its Euro 5 product with advanced engines, gave us a foothold in Europe,” said Sumantran.
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By GlobalDataAshok Leyland’s other European initiatives include the acquisition of a 26% stake in UK bus manufacturer Optare.
Ashok Leyland also formed a joint venture with American company John Deere in 2008. Unlike its European venture, its American project has faced several hiccups in the forms of delays and is yet to roll out its first product.
In spite of this track record, Sumatran still expects the company’s first construction industry vehicle to come from the venture at some point during the next quarter.
Ashok Leyland has also formed a Middle East joint venture with the Ras Al Khaimah Investment Authority (RAKIA) to manufacture vehicles in the Ras-Al-Khaimah Free Zone in the UAE.
