Ashok Leyland unveils investment plan worth Rs 6000 crore
Hinduja Group company Ashok Leyland (ALL) mulls investment of Rs 6000 crore in the next few years, to strengthen its commercial vehicle business.
Of the total proposed investment, Rs 2000 crore will be invested in the Nissan-Ashok Leyland joint venture, which will help the company in increasing its capacities and strengthening its position in the commercial vehicle segment.
The company is also planning to increase the capacity from the present 83,000 vehicles to 100,000 units.
Late last year, Ashok Leyland and Nissan Motor signed a binding cooperation agreement to enter the light commercial vehicles segment in India with an investment of Rs 2,000 crore. The partnership, which will begin production in 2010, will manufacture the new-generation Nissan Atlas F24 light-duty truck and a range of products covering applications from 2.5 tonne to 8 tonne gross vehicle weights.
Earlier this month, Ashok Leyland has reported 7 % fall in its vehicle sales in Feb 2008 to 7,501 units from 8,036 units a year earlier for the same period.