New Delhi: Truck and heavy vehicle maker Ashok Leyland said on 5 September it will start manufacturing buses at its Dubai plant, which entails an initial investment of Rs50 crore, by February next year.
“The Dubai plant is pretty much on target and we will commence production of bus bodies and semi knocked-down vehicles (SKD) by February 2008,” Ashok Leyland managing director R Seshasayee told reporters on the sidelines of SIAM convention.
He said the plant has an initial production capacity of 2,000 buses and the company would subsequently increase it in terms of integration and number of units.
On its tie-up with Nissan, Sashasayee said the joint venture would manufacture light commercial vehicles (LCVs) in the range of 1-6 tonnes.
On 29 August, Ashok Leyland and Japan-based Nissan Motors had announced floating of three joint ventures to strengthen their light commercial vehicle business.
Under the joint venture two plants would be set up. In one, Ashok Leyland would have a majority stake while in the other Nissa would hold be the major shareholder.
Seshasayee declined to comment on the location of the plants, total investment plans and product specifications, but said both companies would disclose their business plans by October when the memorandum of understanding between the two companies is likely to be signed.
The partnership with Nissan, would allow Ashok Leyland to expand into the fast growing LCV segments in the country.