PRESSR: Ashok Leyland UAE sets up wholly-owned Saudi subsidiary in Middle East expansion
Dubai: Ashok Leyland UAE LLC (AL UAE), a wholly owned subsidiary of Ashok Leyland, has set up a new wholly owned subsidiary in Saudi Arabia named Ashok Leyland Saudi Company (AL Saudi), as part of the company’s Middle East expansion plans.
In a disclosure to the National Stock Exchange (NSE) and BSE, the company said it has invested 5,00,000 Saudi Riyal as initial share capital.
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 Ministry of Investment/ Ministry of Commerce of Saudi Arabia, the communication said.
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 Ashok Leyland’s strategic plan to expand its footprints 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 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.
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