At a time when global auto majors are seeking to capitalise on the booming automotive market in India, domestic commercial vehicles major Ashok Leyland Limited (ALL) has set its eyes on the global stage.
Eyeing a slot in the the top 10 CV manufacturers and one in the top five bus manufacturers over the next five years, ALL is looking at mergers and acquisitions in global markets (particularly in the bus segment) which are easy to penetrate. Utilising its frugal engineering capabilities, technology advantages and cost-effective production, ALL senses huge opportunities will actively push this strategy forward, says Dheeraj Hinduja, the new chairman of Ashok Leyland.
While addressing the media with the company’s managing director, R Seshasayee, said, ?We are actively pursuing a bus strategy which will have global presence. There are extremely good markets outside India where we can look at. Regions such as Latin America, West Africa and South East Asia are the potential markets for us. We will look at small bus companies with a sizeable customer base for possible acquisitions or put up brownfield plants in these regions to meet local demand. We will also look at casting/foundries and design/drawing technology companies for possible acquisitions.?
?Apart from frugal engineering capabilities and low-cost advantages, Ashok Leyland possesses the required capabilities, including engines, telematics, electronics, safety systems, CNG and low-entry buses (in association with foreign partners wherever necessary) to offer customised solutions in these markets. We have huge scope in these countries and will pursue the bus strategy aggressively,? added Seshasayee. ?Towards this, ALL will look at introducing multiple products in different segments in different geographies. Regions like Latin America will need products similar to those in India,? he said. Despite the exit of its technology partner, ALL has done a commendable job over the last four years to ensure that its growth strategy remains as strong as ever, Seshasayee said. Ashok Leyland has an assembly plant in the UAE and holds 26% stake in the UK-based Optare, one of the leading bus maker.