In the next year and a half, commercial vehicles major Ashok Leyland will double the workforce at its R&D division to 500.
Go deeper with GlobalData
The company’s plans are ambitious with the acquisition of 50 acres of land to set up the division’s new R&D centre near Chennai (previously Calcutta).
In 2003-04, the company invested €7 million (INR400 million) in R& but this will quadruple in the next two to three years. Ashok Leyland’s R&D expenditure was 1% of its revenue in 2002-03, rose to 1.4 % in 2003-04 and is slated to reach 2 % in 2004.
Ashok Leyland has increased its R&D focus because it wants to become a serious player in the steadily growing multi-axle commercial vehicle segment. The new national budget passed in July 2004 allows tax breaks of 150% on the automotive sector’s expenditure on R&. The company is fast expanding and is looking at markets outside India where there is a need for large GVW, multi-axle truck rigs.
The R&D division would also be used by Ashok Leyland’s subsidiaries such as Ashley Transport Services, which is a freight management intermediary service.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDeepesh Rathore / Tilak Swarup
