Ashok Leyland, an Indian multinational automotive manufacturer, has announced the establishment of its after receiving the necessary regulatory approvals from Ministry of Investment/ Ministry of Commerce of Saudi Arabia.

The flagship brand of the Hinduja Group, Ashok Leyland, 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) region to 13 countries by 2030, compared to its presence in seven countries in the region.

Ashok Leyland is the world’s fourth largest bus manufacturer. It is also the GCC’s only bus manufacturer. Ashok Leyland has over 70% market share in the staff and school bus categories, making it a majority player in the market.

The Indian automotive major said AL Saudi has been set up to establish a vehicle assembly plant for buses and trucks in the kingdom, aimed at serving both domestic and export markets.

In a disclosure to the Indian bourses - National Stock Exchange (NSE) and BSE- the company said it has invested SAR500,000 ($133,238) as initial share capital.

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, said the statement.

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, it added.-TradeArabia News Service