Ashok Leyland Announces Significant Manufacturing Capacity Expansion at RAK Plant

Ashok Leyland capacity expansion in RAK, UAE

HH Sheikh Saud bin Saqr Al Qasimi lays foundation for new Design and Service Training Centre 

Additional investments to augment existing manufacturing capacity and create a design and service training center to address the growing needs of the region


  • Ashok Leyland to make a fresh investment of USD 10 million in the RAK plant
  • The investment will triple its installed capacity to 6,000 units per year
  • The company will be able to increase production capacity by over 60 per cent per day

His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah today laid the foundation stone for Ashok Leyland’s capacity expansion and Design and Service Training Centre at the company’s RAK manufacturing facility, marking enhanced commitment of the flagship brand of the Hinduja Group in UAE and the GCC region.

The ceremony which took place in the distinguished presence of His Highness Sheikh Nahayan Mabarak Al Nahayan, Minister of Culture and Knowledge Development, Mr. G P Hinduja, Mr. Dheeraj G Hinduja and other dignitaries from the Hinduja Family along the senior management of Ashok Leyland comprising of Mr. Vinod K Dasari, Managing Director marked the announcement of the expansion of manufacturing capacity of Ashok Leyland’s RAK plant.

Commenting on the occasion, Mr. Vinod K. Dasari, Managing Director, Ashok Leyland said, “We are honoured to have His Highness at the ground breaking ceremony to expand our manufacturing facilities in Ras Al Khaimah. This plant is key for the supply of buses to address the needs of GCC countries, and with Ashok Leyland’s ambitious plans for Africa, we foresee further expansion of the facility.”

Ashok Leyland is the second largest commercial vehicle manufacturer in India and the fourth largest bus manufacturer in the world. Ashok Leyland (UAE) LLC, the brand’s state-of-the-art vehicle factory in Ras Al Khaimah is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA) and is the only certified local bus factory in the UAE and GCC region.

“A pioneering hub for auto manufacturing, our plant has deepened economic and trade links between India and the UAE, and helped Ras Al Khaimah’ s continued economic growth. Both direct and indirect employment is set to rise significantly with this increased capacity,” Mr.  Dasari said.

RAK as Centre of Excellence

Ashok Leyland officials said the RAK plant will be made into a centre of excellence for its overseas expansion and the establishment of the new design and service training centre was a move in this direction.

As part of the company’s endeavor to add value to the local manufacturing capabilities and in turn to the economy, Ashok Leyland has successfully created a vendor hub in Ras Al-Khaimah and the nearby Emirates. “We are aiming to grow significant localization levels soon and towards this we are working very closely with RAKIA on creating an automotive cluster in Ras Al-Khaimah where our vendors will set up shops,” Mr. Dasari added.

Adding on the volumes generated by the plant, Mr. Dasari said “We will be foraying into the value-premium segment of the automotive market of UAE and the GCC region this year as part of enhancing our product portfolio. This would be in addition to our predominant presence in the school bus segment of the UAE with a market share of over 70 per cent owing to our robust design and enhanced safety features,” Mr. Dasari said.

Fresh investments, new product lines

Unveiling the details of the expansion, Mr. Dasari said Ashok Leyland Limited is making a fresh investment of USD 10 million in the RAK plant to expand production of current models and introduce new models into the regional market, which will include midi buses and trucks.

Currently, the output of RAK plant is 12 buses a day and the new investments will enhance this to 20 buses – apart from the production of trucks from the factory. Inaugurated in December 2010 by the Ruler of Ras Al Khaimah, the plant continues to grow, and will more than triple its annual installed capacity to 6,000 units a year.

Notes to the Editor

About the Hinduja Group

Hinduja Group is an investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors. The Group, founded by Shri P.D. Hinduja in 1914 has activities across three core areas: Investment Banking, International Trading and Global Investments. It also supports charitable and philanthropic activities across the world through the Hinduja Foundation. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure Project Development, Chemicals & Agri business, Energy, Real Estate, Trading and Healthcare.  

About Ashok Leyland

A US $2.2 billion (2014-15) company, Ashok Leyland is one of the most fully-integrated manufacturing companies. Headquartered in Chennai, India, Ashok Leyland is present in over 50 countries, with 7 plants in India, one in Ras Al Khaimah (RAK) and another one in Leeds, United Kingdom. With seven manufacturing locations at Chennai, Hosur (three plants), Alwar, Bhandara and Pantnagar (Uttarakhand), the Company has a production capacity of 150,000 vehicles. Ashok Leyland has associate companies in the Czech Republic and the UAE and a joint venture in Sri Lanka.