Despite recent geopolitical tensions in the Middle East, Ashok Leyland—India’s third-largest commercial vehicle manufacturer—reports that its sales have remained stable during the current quarter.
In an exclusive interview, Company Chairman Dheeraj Hinduja shared updates on how the business is navigating the regional environment and moving forward with its aggressive international expansion plans, including a new production hub.
Navigating the West Asia Crisis
When asked about the potential impact of the conflict on the 2026–27 (FY27) financial year and its manufacturing hub in the United Arab Emirates, Hinduja highlighted a swift recovery:
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Return to Normalcy: Following a recent US-Iran ceasefire, local operations have steadied.
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RAK Plant Resumes: The company’s Ras Al Khaimah (RAK) assembly plant in the UAE is fully back in production, and regional sales have quickly picked up pace.
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Growth Outlook: Backed by robust regional demand, Ashok Leyland expects to maintain steady quarter-on-quarter (Q-o-Q) sales growth moving forward.
Major Expansion: The 5,000-Capacity Saudi Plant
The company is firmly on track with its broader Gulf Cooperation Council (GCC) expansion strategy, designed to relieve capacity pressures and bypass regional tariffs.
Key Milestone: Ashok Leyland is moving ahead with plans to establish a brand-new vehicle assembly facility in Saudi Arabia with an initial capacity of 5,000 units.
This local assembly model will allow the truck and bus manufacturer to bypass a 7.5% customs duty currently levied on vehicles imported into Saudi Arabia from the UAE, while also positioning the brand as a preferred domestic supplier for major Saudi government procurement and infrastructure programs.
