Ashok Leyland (NSE: ASHOKLEY, BSE: 500477) is a commercial vehicle manufacturing

company based in Chennai, India. Founded in 1948, the company is one of India's leading
manufacturers of commercial vehicles, such as trucks and buses, as well as emergency and military
vehicles. Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and
marine applications. It sells about 60,000 vehicles and about 7,000 engines annually. It is the second
largest commercial vehicle company in India in the medium and heavy commercial vehicle
(M&HCV) segment with a market share of 28% (2007–08). With passenger transportation options
ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment.The
company claims to carry over 60 million passengers a day, more people than the entire Indian rail
network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range
of trucks. However Ashok Leyland has presence in the entire truck range starting from 7.5 tons to
49 tons. The joint venture announced with Nissan Motors of Japan would improve its presence in
the Light Commercial Vehicle (LCV) segment (<7.5 tons).

An Ashok Leyland bus run by the Chennai Metropolitan Transport Corporation

Iraq Army Ashok Leyland truck

A fire truck in India manufactured by Ashok Leyland

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History
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Current
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Product
[edit] History
This section may need to be rewritten entirely to comply with Wikipedia's quality
standards. You can help. The discussion page may contain suggestions. (September 2010)
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, a British-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

Inter-city luxury bus

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 in Uttarakhand 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%.

[edit] Nissan Ashok Leyland

In 2007, the company announced a joint venture with Japanese auto giant Nissan (Renault Nissan
Group) which will share a common manufacturing facility in Chennai, India. The shareholding
structures of the three joint venture companies are:
• 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
• The company has six manufacturing locations in India:
• Ennore and Hosur, Tamilnadu (Hosur - 1, Hosur - 2, CPPS)
• Alwar, Rajasthan
• Bhandara, Maharastra
• Ashok Leyland's Technical Centre, at Vellivoyalchavadi in the outskirts of Chennai, is a
state-of-the-art product development facility, that apart from modern test tracks and
component test labs, also houses India's one and only Six Poster testing equipment
• The company has an Engine Research and Development facility in Hosur
• 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.
The following are the other functional heads at Ashok Leyland:
1. Mr. Vinod Dasari - Whole Time Director
2. Mr. K.Sridharan - Chief Financial Officer
3. Mr. J.N.Amrolia, Executive Director - Construction and Allied Businesses
4. Mr. Anup Bhat, Executive Director - Strategic Sourcing
5. Mr. S.Balasubramanian, Executive Director - Projects
6. Mr. A.K.Jain, Executive Director - Project Planning
7. Mr. R.R.G.Menon, Executive Director - Product Development
8. Mr. N.Mohanakrishnan, Executive Director - Internal Audit
9. Mr. M.Nataraj, Executive Director - Global Bus Strategy
10.Mr. Rajindar Malhan