Ashok Leyland to export components

Our Corporate Bureau
12 June 2004

Chennai: Commercial vehicles major, Ashok Leyland Limited, will start export of auto components to the Japanese vehicle manufacturer, Hino Motors, for which it has developed some critical engine components.

According to officials, the components are undergoing tests and the company is working on the final price before starting the shipments. It may be recalled, Ashok Leyland sources engine technology from Hino Motors.

Ashok Leyland has decided to invest Rs 550 crore over the next two years towards capacity addition, research and development and replacements of old machinery.

Announcing this at a press conference, R Seshasayee, managing director, said, "During 2004-05 the capex will be Rs 300 crore and the balance Rs 250 crore will be spent in 2005-06."

The additional investments will be in four phases. The first phase will be increasing the capacity to 67,000 units per annum (pa). The second phase will comprise activities like development of new aggregates, product improvement (high power/torque), development of new engine, expanding the cab production capacity. The third and fourth phase involves increasing the overall capacity to 75,000 pa and production of new generation vehicles totaling 10,000 units pa.

The company has slated a slew of launches during this calendar year. In August, Ashok Leyland will be launching a new generation tractor vehicle, a factory built 12m, 180hp bus, followed by a rear-engine 260hp coach.