Ashok Leyland
Type Public
Industry automotive
Founded 1948
Hinduja , Vinod Dasari
Products Automobiles
Engines
Employees 11,500
Contents
[hide]
1 History
2 Current status
o 2.1 Nissan
Ashok Leyland
o 2.2 iBUS
3 Facilities
4 Leadership
5 Achievements
6 Products
o 6.1 Goods
segment
7 See also
8 References
9 External links
[edit]History
Following the independence of India, Pandit Jawaharlal Nehru, India’s first Prime Minister, persuaded Mr
Raghunandan Saran, an industrialist, to enter automotive manufacture. The company began in 1948
as Ashok Motors, to assemble Austin cars. The company was renamed and started manufacturing
commercial vehicles in 1955 with equity participation by British Leyland. Today the company is the flagship
of the Hinduja Group, aBritish-based and Indian originated transnational conglomerate.
Early products included the Leyland Comet bus which was a passanger body built on a truck chassis, sold
in large numbers to many operators, including Hyderabad Road Transport, Ahmedabad Municipality,
Travancore State Transport, Bombay State Transport and Delhi Road Transport Authority. By 1963, the
Comet was operated by every State Transport Undertaking in India, and over 8,000 were in service. The
Comet was soon joined in production by a version of the Leyland Tiger.
In 1968, production of the Leyland Titan ceased in Britain, but was restarted by Ashok Leyland in India. The
Titan PD3 chassis was modified, and a five speed heavy duty constant-mesh gearbox utilized, together
with the Ashok Leyland version of the O.680 engine. The Ashok Leyland Titan was very successful, and
continued in production for many years.
Over the years, Ashok Leyland vehicles have built a reputation for reliability and ruggedness. This was
mainly due to the product design legacy carried over from British Leyland.
Ashok Leyland had a collaboration with the Japanese company Hino Motors from whom the technology for
the H-series engines was bought. Many indigenous versions of H-series engine were developed with 4 and
6 cylinder and also conforming to BS2 and BS3 emission norms in India. These engines proved to be
extremely popular with the customers primarily for their excellent fuel efficiency. Most current models of
Ashok Leyland come with H-series engines.
In 1987, the overseas holding by Land Rover Leyland International Holdings Limited (LRLIH) was taken
over by a joint venture between the Hinduja Group, the Non-Resident Indian transnational group
and IVECO Fiat SpA, part of the Fiat Group and Europe's leading truck manufacturer. Ashok Leyland’s
long-term plan to become a global player by benchmarking global standards of technology and quality was
soon firmed up. Access to international technology and a US$200 million investment programme created a
state-of-the-art manufacturing base to roll out international class products. This resulted in Ashok Leyland
launching the 'Cargo' range of trucks based on European Ford Cargo trucks. These vehicles used Iveco
engines and for the first time had factory-fitted cabs. Though the Cargo trucks are no longer in production
and the use of Iveco engine was discontinued, the cab continues to be used on the 'ecomet' range of
trucks.
In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when
it became the first in India's automobile history to win the ISO 9002 certification. The more
comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all
vehicle manufacturing units in 2002. In 2006, Ashok Leyland became the first automobile company in India
to receive the TS16949 Corporate Certification.Editor’s note: This is part of a series of articles peeking into
clean car industries and car manufacturers of China, India, South Korea and Germany.
Among many other goals, Ashok Leyland aims to expand its operations to penetrate into overseas markets.
Included in the company’s plans is to acquire smaller car manufacturers in China and in other developing
countries. In October 2006, Ashok Leyland bought a majority stake in the Czech based- Avia. Called Avia
Ashok Leyland Motors s.r.o., this will give Ashok Leyland a channel into the competitive European market.
According to the company, in 2008 the joint venture sold 518 LCVs in Europe despite tough economic
conditions. Furthermore, the company will expand its product offers into construction equipment, following
a joint venture with John Deere. Newly formed in June 2009, the John Deere partnership is a 50/50 split
between the companies. The company says negotiation is progressing on land acquisition, and the
production plans are in place. The venture is scheduled to start rolling out wheel loaders and backhoe
loaders in October 2010. Aside from the full expansion planned for the company, Ashok Leyland is also
paying close attention to the environment. In fact, they are one of the companies showing the strongest
commitment to environmental protection, utilizing eco-friendly processes in their various plants. Even as
they thrust into different directions, Ashok Leyland maintains an R&D group that aims to uncover ways to
make their vehicles more fuel efficient and reduce emissions.
In fact, even before laws were placed on car emissions, Ashok Leyland was already producing low-
emission vehicles. Back in 1997, they have already released buses with quiet engines and low pollutant
emission based on the CNG technology. In 2002 it developed the first hybrid electric vehicle. Ashok
Leyland has also launched a mobile emission clinic that operates on highways and at entry points to New
Delhi. The clinic checks vehicles for emission levels, recommends remedies and offers tips on
maintenance and care. This work will help generate valuable data and garner insight that will guide further
development.
When it comes to the development of environmentally friendly technologies, Ashok Leyland has developed
Hythane engines. In association with the Australian company Eden Energy, Ashok Leyland successfully
developed a 6-cylinder, 6-liter 92 kW BS-4 engine which uses Hythane (H-CNG,) which is a blend of
natural gas and around 20% of hydrogen. Hydrogen helps improve the efficiency of the engine but the
CNG aspect makes sure that emissions are at a controlled level. A 4-cylinder 4-litre 63 KW engine is also
being developed for H-CNG blend in a joint R&D program with MNRE (Ministry of New and Renewable
Energy) and Indian Oil Corporation. The H-CNG concept is now in full swing, with more than 5,500 of the
technology’s vehicles running around Delhi. The company is also already discussing the wide-scale use of
Hythane engines with the Indian government. Hythane engines may be expected in the near future, but
these may not be brought to the United States as yet. Ashok Leyland’s partnership with Nissan is also
focusing on vehicle, powertrain, and technology development listed under three joint ventures. With
impressive investment, the joint ventures will focus on producing trucks with diesel engines that meet Euro
3 and Euro 4 emission standards. In the coming years, Ashok Leyland also has some hybrid trucks and
buses in store for its market. The buses and trucks are set to feature a new electronic shift-by-wire
transmission technology as well as electronic-controlled engine management for greater fuel efficiency.
Ashok Leyland focuses on improving fuel efficiency without affecting automotive power, and the vehicles
will have a 5% improvement on fuel efficiency. Ashok Leyland is also developing electric batteries and bio-
fuel modes.
Ashok Leyland Ltd’s March quarter results were expected to be impressive, as its monthly vehicle output
reports had indicated a 138% jump in volumes. But what impressed was its net profit growth of 317%, to
Rs223 crore, over the year-ago period, even as sales rose by 139%. Ashok Leyland’s operating profit
margin rose to 13% compared with 10.5%. Higher volume growth, a better product mix due to higher sales
of multi-axle vehicles and tractor trailers, and cost reduction were key reasons for margin expansion. its
estimate for volume growth in 2011 is conservative, at 15% compared with over 30% in FY2010.
Around 1,200 buses under the Jawaharlal Nehru National Urban Renewal Mission scheme are yet to be
delivered of the 5,098 ordered. Besides, it has orders on hand from state transport undertakings for another
2,000 buses. The firm is investing to increase its capacity, with Rs1,200 crore proposed for expansion
plans over the next two years; mainly to increase output of engines and new generation cabs. Besides, it
plans to invest Rs800 crore in joint ventures. Analysts believe that its Uttarakhand plant is expected to
deliver 22,000-25,000 vehicles in fiscal 2011, in its first full year of operation. The company has also
steadily gained market share, from 21-22% in the first quarter of 2010 to 28-29% in the fourth quarter. One
concern is that it is not yet a strong player in the eastern market. Besides, the southern market, traditionally
its stronghold, has grown by only 15% in volume terms in 2010. The rest of India (mainly north and west)
grew by 40% during the year.
An Ashok Leyland-Nissan joint venture produced light commercial vehicles (LCVs) from the former's Hosur
facility near Bangalore as well as from Renault-Nissan's car plant near Chennai. [2]
[edit]Current status
Ashok Leyland is the second technology leader in the commercial vehicles sector of India behind Tata
Motors. The history of the company has been punctuated by a number of technological innovations, which
have since become industry norms. It was the first to introduce multi-axled trucks, full air brakes and a host
of innovations like the rear engine and articulated buses in India. In 1997, the company launched the
country’s first CNG bus and in 2002, developed the first Hybrid Electric Vehicle.
The company has also maintained its profitable track record for 60 years. The annual turnover of the
company was USD 1.4 billion in 2008-09. Selling 54,431 medium and heavy vehicles in 2008-09, Ashok
Leyland is India's largest exporter of medium and heavy duty trucks. It is also one of the largest private
sector employers in India - with about 12,000 employees working in 6 factories and offices spread over the
length and breadth of India.
The company has increased its rated capacity to 105,000 vehicles per annum. Also further investment
plans including putting up two new plants - one inUttarakhand in North India and a bus body building unit in
middle-east Asia are fast afoot. It already has a sizable presence in African countries like Nigeria, Ghana,
Egypt and South Africa.
Ashok Leyland has also entered into some significant partnerships, seizing growth opportunities offered by
diversification and globalization – with Continental Corporation for automotive infotronics; with Alteams in
Finland for high pressure die casting and recently, with John Deere for construction equipment. [3]
As part of this global strategy, the company acquired Czech Republic-based Avia's truck business. The
newly acquired company has been named Avia Ashok Leyland Motors s.r.o. This gives Ashok Leyland a
foothold in the highly competitive European truck market.
The Hinduja Group also bought out IVECO's indirect stake in Ashok Leyland in 2007. The promoter
shareholding now stands at 51%.
Ashok Leyland Nissan Vehicles Pvt. Ltd., the vehicle manufacturing company will be owned 51%
by Ashok Leyland and 49% by Nissan
Nissan Ashok Leyland Powertrain Pvt. Ltd., the powertrain manufacturing company will be owned
51% by Nissan and 49% by Ashok Leyland
Nissan Ashok Leyland Technologies Pvt. Ltd., the technology development company will be
owned 50:50 by the two partners.
Dr. V. Sumantran, Executive Vice Chairman of Hinduja Automotive Limited and a Director on the Board of
Ashok Leyland is the Chairman of the Powertrain company and he is on the Boards of the other two JV
companies. The venture, once it takes off, will be one of the largest investments made in automotive field in
the country
[edit]iBUS
Ashok Leyland announced iBUS in the beginning of 2008, as part of the future for the country's increasingly
traffic-clogged major cities. Launched as a concept during the Auto Expo 2008 in India, a vehicle for a first
production run of pilot models should be ready by the end of this year. The start of full production is
scheduled for 2009. The bus will probably be equipped with an engine from the new Neptune family, which
Ashok Leyland also introduced at this exhibition, which are ready for the BS4/Euro 4 emission regulations
and can be upgraded to Euro 5.[4]
[edit]Facilities
Alwar, Rajasthan
Bhandara, Maharastra
The company is setting up a new Plant in the North Indian state of Uttarakhand at Pant Nagar at
an investment outlay of Rs. 1200 crores. This plant is expected to go on stream in the year 2010. The
Plant will have a capacity to produce around 40,000 commercial vehicles and is expected to cater
mainly to the North Indian market taking advantage of the excise duty and other tax concessions
The company has signed an agreement with Ras Al Khaimah Investment Authority (RAKIA) in
UAE for setting up a bus body building unit in the Middle East.
[edit]Leadership
Ashok Leyland is currently headed by Mr R. Seshasayee who is the Managing Director since 1998. Under
his leadership the company has expanded from a purely India-centric company to a company with global
focus. Mr. Seshasayee was also the President of CII (Confederation of Indian Industry), the apex body
representing Indian Industry for the year 2006-2007.
Ashok Leyland buses carry 60 million passengers a day, more people than the entire Indian rail
network
Ashok Leyland has a near 85% market share in the Marine Diesel engines markets in India
In 2002, all the vehicle-manufacturing units of Ashok Leyland were ISO 14001 certified for their
Environmental Management System, making it the first Indian commercial vehicle manufacture to do
so.
In 2005, received the BS7799 Certification for its Information Security Management System
(ISMS), making it the first auto manufacturer in India to do so.
In 2006, received the ISO/TS 16949 Corporate Certification, making it the first auto manufacturer
in India to do so.
It is one of the leading suppliers of defence vehicles in the world and also the leading supplier of
logistics vehicles to the Indian Army.
[edit]Products
(not exhaustive)
Luxura
Cheetah BS-I
Cheetah BS-II
Panther
12M bus
Stag Mini
Stag CNG
222 CNG
Lynx
Double Decker
Vestibule bus
Gensets
[edit]Goods segment
Comet 1611
1612 H
1613 H
4/51 GS
1613
Taurus 2516/2 (6x4) Tipper
Bison Tipper
1613 ST (4x2)
2516 H (6X2)
Taurus 2516 - 6 X 2
4018 Tractor
ecomet 912
ecomet 111i
4921