The Hindu Business Line : Ashok Leyland eyes ASEAN stable

Target Thailand
Joint venture with Sammitr Motors to source parts for the trucks.
Developing specialised trucks to serve Thai food processing industry.

New Delhi June 26 Ashok Leyland is scouting for a joint venture partner to expand the range of its trucks to serve the South-East Asian market. It is currently in talks with a Thai component maker, Sammitr Motors Manufacturing Public Company Ltd.

Joint venture

The move would facilitate the company to mark its presence in the ASEAN automobile market, which has been recently on the radar of Indian auto component and vehicle manufacturing companies.

"We are exploring the possibility of a joint venture with Sammitr Motors to source parts for our trucks. We are looking to expand the range of our heavy commercial vehicles.

A joint venture with a Thai partner would also increase cost competitiveness to export our trucks to the Asean region," said a company official. He also said that with the booming food processing industry in Thailand, the company may also look at developing specialised trucks to serve this industry.

Market share

Currently, the company exports mainly to West Asia, South Asia and Africa. It has 60 per cent market share in the standard bus segment in Dubai and 65 per cent in the medium commercial vehicles segment in Sri Lanka.

Sammitr Motors Group top officials would be meeting Ashok Leyland brass this week in Chennai. "We are in talks with two major commercial vehicles manufacturers in India to supply parts mainly for dump truck and trailer vehicles," said the Marketing and Sales Overseas General Manager, Ms Ratana Stiramon.

Investment plans

Declining to give any details on the company's investment plans, she said, "It would depend on the kind of joint venture that takes place. However, we are certainly looking to set up a manufacturing facility in collaboration with an Indian partner."

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