Ashok Leyland UAE (AL UAE), a wholly owned subsidiary of Ashok Leyland, has established a new wholly owned subsidiary in Saudi Arabia, named Ashok Leyland Saudi Company (AL Saudi), as part of the company’s expansion plans in the Middle East.
In a disclosure to the National Stock Exchange (NSE) and BSE, the company said that it has invested 5,00,000 Saudi Riyal as initial share capital. This move is part of the company’s strategic expansion plans across the Middle East, aimed at strengthening its presence in the region’s growing commercial vehicle market.
AL Saudi has been set up to establish a vehicle assembly plant for buses and trucks in Saudi Arabia, aimed at serving both domestic and export markets.
The company has received the necessary regulatory approvals from the Ministry of Investment/ Ministry of Commerce of Saudi Arabia, as per the statement.
Ashok Leyland’s Growing Footprint in the GCC and MENA Region
Ashok Leyland, which is the flagship brand of the Hinduja Group, has its assembly plant in the UAE in Ras Al Khaimah, the first of its kind in the GCC. The plant in the UAE started production in 2010.
The Saudi expansion comes in the context of the company’s strategic plan to expand its footprint in the Middle East and North Africa (MENA) to 13 countries by 2030, compared to its presence in seven countries in the region.
As a brand, Ashok Leyland has had a longstanding presence in the UAE and the region for 35 years, and over the years, it has crossed many significant milestones.
Ashok Leyland is the world’s fourth-largest bus manufacturer. It is also the GCC’s only bus manufacturer. Ashok Leyland has over 70 per cent market share in the staff and school bus categories, making it a majority player in the market.
The bus manufacturer has also been instrumental in developing an automotive ecosystem of local vendors in the UAE, and currently, a significant share of the components is sourced from the UAE market.
