Ashok Leyland and Hino Motors of Japan have entered into a mutual cooperation agreement that will allow Ashok Leyland to utilise Hino Motors’ engine technology for making Euro-VI engines. Ashok Leyland will, on its part, help Hino Motors source cheaper engine parts from India for its global operations. Hino Motors and Ashok Leyland have had a cooperative agreement for engine production in India since 1986. Vinod K Dasari, managing director and CEO, Ashok Leyland, said: “We believe in long-term partnerships, and have great respect for Hino Motors. This cooperation between our companies would be mutually beneficial and enable both of us to produce globally competitive products.”
Hino Motors President & CEO Yoshio Shimo said the cooperation with Ashok Leyland takes advantage of the strengths that the two companies have cultivated. “Hino will enhance its global competitiveness by utilising Ashok Leyland’s parts procurement capabilities in India,” he added. Shares of Ashok Leyland rose by over 4% after the company said it has inked a pact with its long-standing Japanese partner Hino to jointly develop BS-VI compliant engines. The stock gained 4.43% to settle at Rs 123.65 on the BSE. During the day, it rose by 4.72% to Rs 124. On the NSE, shares jumped 4.34% to end at Rs 123.60.
In terms of volume, 14.24 lakh shares of the company were traded on the BSE and over 2 crore shares changed hands on the NSE during the day. The move will not only help Ashok Leyland be ready with BS-VI vehicles in India before the government’s deadline of April 2020, when the new emission norms are implemented, but will also help leverage its exports.