Mobility in this day and age is evaluated based on luxury, performance, and practicality. While luxury and performance steal the spotlight, the silent hero that is practicality is often overlooked. Fast forward to today’s headlines, and there is excellent news on the practicality front.
Ashok Leyland, a significant name in the commercial vehicle sector and part of the Hinduja Group, is accelerating its expansion in the Middle East. With a focus on sustainable mobility and strategic regional growth, the company is solidifying its position in the GCC and beyond, marking an exciting shift in its operations with key investments and new facilities.
Ashok Leyland’s Saudi Expansion
Ashok Leyland is no stranger to the shifting sands, and its recently established wholly owned subsidiary, Ashok Leyland Saudi Company (AL Saudi), is another move on the home turf. AL Saudi is set to make a significant impact in the region by setting up a new vehicle assembly plant in the kingdom, this facility will focus on assembling buses and trucks, serving both domestic and export markets. The Saudi operation has already received the necessary regulatory approvals from the Ministry of Investment and the Ministry of Commerce, paving the way for a smooth expansion.
Electrified commercial transport in the UAE?
Electric mobility is now the talk of the dealership floors, and Ashok Leyland is not one to be left out of the podium. Ashok Leyland is also expanding its electric vehicle (EV) production capabilities in the UAE. The company’s electric bus unit, Switch Mobility, is relocating its manufacturing operations from the UK to Ras Al Khaimah. This move will unlock the UAE’s cost-efficient manufacturing ecosystem and its strategic location, enabling easier access to European, UK, and GCC markets. With practical thinking as the theme, a new plant won’t be an option, but the existing Ras Al Khaimah facility will see a significant upgrade to accommodate a new age of practical transport. This shift also positions Ashok Leyland to meet the growing demand for electric buses in the GCC and beyond.
The UAE, with its industrial policies and investment incentives, provides an ideal environment for companies in the clean mobility space. With over 55% of components for the buses sourced locally, the Ras Al Khaimah plant will serve as a critical node in Ashok Leyland’s supply chain and a key driver of its green transport strategy.
The strategy and numbers behind it.
The establishment of the Saudi subsidiary and the expansion of the UAE facility are part of Ashok Leyland’s broader goal to strengthen its presence in the MENA region. The company’s expansion aligns with its target of increasing its market share to 13 countries in the MENA region by 2030. Currently, Ashok Leyland operates in seven countries, and this growth will enable the company to better serve local markets and meet export needs. The expansion into Saudi Arabia, combined with its strong base in the UAE, will further solidify Ashok Leyland’s position as a regional leader in the commercial vehicle sector.
Ashok Leyland is the only bus manufacturer in the GCC and has maintained a strong foothold in the region for over 35 years. The company holds more than 70% of the market share in the staff and school bus categories, making it a dominant player in these segments. Over the years, Ashok Leyland has cultivated a robust local vendor ecosystem, sourcing a significant portion of its components from the UAE market. This localized supply chain supports the company’s operations while positively impacting the UAE’s economic landscape.
The future
As Daimler sets its foothold in Oman and Ashok Leyland marks manufacturing strides in the UAE, it’s not an impossible task to expect the next frontier of mass transportation right here at home.
What lies ahead for the UAE’s ongoing drive toward innovation and manufacturing? Stay tuned to Automotivate ME to find out.
