Ashok Leyland's Pantnagar facility to open Today

Hinduja group company Ashok Leyland said it would invest Rs3,000 crore over the next three years on various projects, including its light commercial vehicle joint venture with Japanese automaker Nissan.

Ashok Leyland managing director R Seshasayee

"We had cut back our investment due to the market conditions. Now, we are activating the investment again as the market has come back. We will invest Rs 3,000 crore in the next three years for various activities," Ashok Leyland managing director R Seshasayee told reporters, a day before inaugurating the company's Pantnagar integrated trucks unit.

He added that the investment would cover the company's share in the LCV JV with Nissan, the construction equipment business (JV with John Deere) as also overseas operations (bus facility at Ras-Al-Khaimah).

Ashok Leyland had to cut back the capex it announced last year to Rs2,000 crore from Rs3,200 crore for three consecutive years as the fallout of the slowdown engulfed the auto sector.

Seshasayee said the commercial operations at its Pantnagar facility would start tomorrow. The facility would have the capacity to produce 75,000 units at full utilisation.

He added that the center of gravity of the company's business would shift from south to north after the facility opened tomorrow. He said that the company would further consolidate its north India base when it would transform the Alwar bus body making unit into an integrated bus manufacturing plant in the next three - four years.