This expansion enhances capacity, improves cost competitiveness, creates local supply chain and employment in the commercial vehicle sector, he said.
In a post titled- ‘Moving towards creating Ashok Leyland’s 4th Home Market outside India – The ASEAN Region’- Agarwal noted that the company has always treated overseas markets as its Home Markets.
“We have been present in the GCC (Gulf Cooperation Council) region now for more than three decades. About three decades ago, we established a local manufacturing operation at Ras Al Khaimah in UAE. Given the huge demand for Ashok Leyland’s buses and trucks in the region, this plant is now operating beyond its production capacity,” he said.
“What home market means to us is very simple–local assembly / manufacturing operations and local supply chain, long-standing partnerships with local distributor, our own team locally based to support distribution partners, local warehouses for supply of parts, and local talent who have deep knowledge of market dynamics and have customer relationships,” he said.
While building these take longer time and need focus and patience, but in the long run this model delivers sustainable results and an enduring brand value, Agarwal said.
Our strategic collaboration with PT Pindad in Indonesia marks our entry into one of ASEAN’s most promising commercial vehicle markets, he said.
“Through this partnership, we are initially focusing on electric buses and on the defence mobility segment. We are also looking at establishing our own plant and a regional marketing office in Indonesia,” Agarwal said.
“Our record financial performance and the cash reserves give us the confidence to invest in growth of our International Business and taking Ashok Leyland brand global. We believe the winners in this decade will be those who build global capability with local depth,” he said.
