The Economic Times of India reports that Iveco is believed to be holding discussions to sell its 15% stake in Ashok Leyland. European heavy truck maker Scania and a few other international commercial vehicle majors are said by industry sources to be interested.
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Ashok Leyland is said to be planning to enter the LCV sector in the 2.5 tonne to 6 tonne category and is scouting for acquisitions in the international markets. It is also said to be planning to raise close to US$100-150m either by way of convertible bonds or debt.
The report quoted Ashok Leyland’s MD, R Seshasayee, as saying that Volvo Truck is not picking up a stake in Ashok Leyland as had been widely rumoured.
Scania is said to be eyeing the Indian truck and bus market as a growth opprtunity.
India’s market for trucks and buses is dominated by Tata Motors and Ashok Leyland.
Ashok Leyland’s annual turnover exceeds US$1bn. It has a production capacity of 77,000 vehicles and 87,000 engines per annum.
