Ashok Leyland signs MoU with Vijaya Bank

Ashok Leyland signs MoU with Vijaya Bank
Ashok Leyland, the Hinduja Group flagship, and Vijaya Bank executed a Memorandum of Understanding by which Vijaya Bank will fund Ashok Leyland’s end-customers.

Ashok Leyland’s relationship with Vijaya Bank gets further strengthened through this process. Vijaya Bank, already active in the auto and SME space, becomes a preferred financier for commercial vehicles of Ashok Leyland.

Ashok Leyland has entered into similar MoUs with State Bank of India, State Bank of Patiala, Jammu & Kashmir Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Central Bank of India, Union Bank of India and Canara Bank seeking to capitalise on the financial strength, wide reach and commitment of PSBs to serve the Priority Sector (which includes Small Road Transport Organisations

Ashok Leyland signs MoU with Corporation Bank

CHENNAI: Hinduja group flagship company Ashok Leyland on Friday signed a MoU with Corporation Bank to provide retail financing for Ashok Leyland's commercial vehicle customers.

This tie-up enables Ashok Leyland to leverage the extensive branch network and customer reach of Corporation Bank to the mutual benefit of both the Organisations, a company release here said.

"In the current scenario, we expect Public Sector Banks to provide the most cost effective funding solutions to our customers" Ashok Leyland Chief Financial Officer K Sridharan said.

In handling the retail portfolio, Corporation Bank Deputy General Manager B N Shenoy said the Bank's Retail Hubs situated in various Centres were fully geared to provide quicker decision support.

He said the Bank currently has an aggregate portfolio of Rs 729 crore under Vehicle Financing.

Ashok Leyland had similar agreement with State Bank of India, State Bank of Patiala and Jammu and Kashmir Bank, the release added.

Source:http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Honda_Siel_Cars_to_increase_CR-V_price_by_30_pc/articleshow/4201248.cms

Ashok Leyland to supply high-end Ultra Low Entry CNG buses to DTC

875 bus order worth Rs. 4.8 billion;
12 year maintenance contract for Rs 7.1 billion

Chennai, 22nd January, 2009 : Ashok Leyland, the flagship of the Hinduja Group, has bagged an order for 875 high-end Ultra Low Entry (ULE) buses from the Delhi Transport Corporation (DTC) as part of their fleet modernisation. Worth Rs. 4.8 billion, this is the Company’s single largest order from a State Transport Corporation in value terms. Supply of 350 a/c and 525 non-a/c buses will commence by mid 2009 and will be completed by September’09.

“The uniqueness of this order is that we have been contracted to offer a truly comprehensive urban transportation solution,” said Mr. R Seshasayee, Managing Director, Ashok Leyland. “Besides delivering these fully-built buses, we will train key personnel like drivers and mechanics and will maintain the buses to ensure uptime, by setting up exclusive maintenance depots,” he added.

Mr R K Verma, IAS, Secretary cum Transport Commissioner & CMD DTC said : “We are happy that Ashok Leyland who had spearheaded the induction of CNG in our bus fleet, is now partnering us in our modernization drive. I am confident in Ashok Leyland’s capabilities to offer us world class buses and provide the crucial long term support to ensure uptime”.

The maintenance contract, valid for 12 years, is valued at a further Rs 7.1 billion. Drivers will be trained at the Company’s state-of-the-art Driver Training Institute, situated at Burari, near New Delhi, which has been set up jointly with the Government of Delhi.

Stepless entry

The new ULE buses will have a floor height of 390 mm, for step-less entry. These 12-metre- long buses will have 35-seats with a 2x2 configuration. Passenger ride comfort is further addressed through a wide 1100 mm door and kneeling facility for easy entry and exit as also comfortable grab bars and air suspension. A retractable ramp is a disabled-friendly feature.

These buses will be powered by a 230 hp engine and fitted with automatic transmission, Speed Limiting Device and multiplex wiring.

The chassis and the body for the fully-built buses will be manufactured at Ashok Leyland’s Alwar Plant, which had spearheaded the induction of CNG technology in Delhi buses, with a supply of over 3,500 CNG bus chassis. The infrastructure has since been augmented for bus body assembly, with ultra-modern facilities like a cubic framing fixture, hydraulic automated paneling, conveyors for automation, body lifting mechanisms, paint booth and a shower testing facility.

To be manufactured to the very exacting and stringent specifications laid down by DTC, the body structures will go through rigorous processes such as 336 hours of Salt Spray Test for corrosion.

Soruce: www.ashokleyland.com

US$ 10.5 million order for Ashok Leyland from Honduras

US$ 10.5 million order for Ashok Leyland from Honduras
To supply 139 vehicles for poverty eradication and humanitarian purposes

Ashok Leyland, the Hinduja Group flagship, has bagged an order for 139 vehicles from the Honduras Armed Forces (HAF), worth US$ 10.5 million. These vehicles will augment the transport resources of the HAF to carry out key poverty eradication programmes and for other humanitarian purposes. The tender is financed under an EXIM Bank of India line of credit.

Ashok Leyland has been contracted to supply a range of vehicles that include the 4x4 Stallion trucks, the 4x4 Topchi trucks, 4930 Tractor and Falcon Long Bus (both a/c and non versions). All these vehicles will be Left Hand Drives.

“This order marks our foray into Latin America which has been one of our target markets,” said Mr. R. Seshasayee, Managing Director, Ashok Leyland. “This order is a hard-won since our vehicles have to undergo very extensive and strenuous trials on terrains and in conditions where they have to be employed. It is also heartening to note that our vehicles are going to be used for humanitarian purposes by the Honduras Armed Forces,” he added.

Thailand has been another recent breakthrough. Following trials, the Stallion 4x4 and Stallion 6x6 have been approved by the Royal Thai Army and an initial lot of 10 Stallion 6x6 vehicles have already been supplied.



Ashok Leyland is the largest supplier of logistics vehicles to the Indian Army with over 50,000 of them in use, including the Stallion 4x4 vehicles that form its logistics backbone. A pioneer in the design, development and manufacture of Defence vehicles, the Company has a comprehensive range featuring: Stallion 4x4, Stallion 6x6, Stallion Aquatherma – a specially-designed water bowzer, Light Recovery Vehicle (LRV) 4x4, Topchi 4x4, Field Artillery Truck (FAT) 6x6, Crash Fire Tender (CFT) 6x6, Truck Fire Fighter (TFF) 4x2 and Light Specialist Vehicle (LSV). All these vehicles are tried and tested in altitudes ranging from sea-level to over 5,500 metres and in temperatures ranging from -35 degree Celsius to +55 degree Celsius.

Source: www.ashokleyland.com

Ashok Leyland Sept Sales Down By 14.5%

10/10/2008 New Delhi,PTI
Hinduja Group flagship company Ashok Leyland on Thursday reported a 14.5 per cent decline in vehicles sales in September, 2008 at 6,186 units compared with 7,241 units in the same month last year.

Domestic sales for the month stood at 5,454 units as compared with 6,761 units in corresponding month last year, down 9.33 per cent, the company said in a statement.

Exports during the month grew by 53 per cent at 732 units as compared with 480 units in the same period last year. The company has reported a decline of around 19 per cent in total domestic sales of medium and heavy commercial vehicles at 5423 units as compared with 6694 units in the same month last year.

Exports of light commercial vehicles for the month of September, 2008 stood at 66 units as compared with 15 units in the same period last year, while the total domestic sales in the segment declined by 53 per cent at 31 units in September as compared with 67 units in the corresponding period last year

Nissan India to bring down Murano by next fiscal

Japan’s third largest automobile manufacturer, Nissan Motor, has firmed up its commitment to the Indian market with a decision to diversify its product portfolio here. ‘To begin with, we will offer Murano as a completely built import in the following fiscal,’ informed Corporate VP, Global Communications, Nissan, Simon Sproule adding that the manufacturer is also drawing up plans to locally manufacturer a brand new, India-specific platform for the A segment at their Chennai facility by 2010.
At the moment, Nissan follows a strict CBU import policy and offers within its limited portfolio the executive-sedan Teana and a Sports Utility Vehicle X-Trail. ‘We sold over 550 units in 2007 through five dealers, 313 of which were Teanas. Market conditions are perfectly apt to launch a premium product in the SUV segment and we don’t want to miss out on this opportunity,’ added Director Marketing and Sales, Nissan Motor India, Neeraj Garg.
Garg however refused to comment on the price point of the globally popular Murano. The Murano is a mid-size crossover SUV first manufactured by Nissan in December 2002 and sold as a 2003 model. Designed at Nissan Design America in La Jolla, California, the first generation Murano was based on the Nissan FF-L platform first used by the third generation Altima. The European version of the Murano began sales in 2004 and is available only in one version.
The Murano was nominated for the North American Truck of the Year award for 2003. It is manufactured at Kanda, Fukuoka, Japan. However, it is not clear whether the Indian offering will be imported from Japan or the European market and the price point will clearly depend on that.
Economy products such as M&M’s Scorpio and Tata Motors’ Safari dominate the SUV segment in India. Over the last few years however, there has been a gradual yet positive shift in consumer sentiment for premium products flagged by Mitsubishi’s Montero at the top end and Suzuki’s Grand Vitara at the bottom. Also, Mitsubishi plans to launch its Outlander in the same segment. The spectrum recently saw GM launch the all-new Captiva. Further, there is clearly a niche market for ultra-premium import segment such as Toyota’s Prado.
Imports driving growth
These products are driving the growth in the SUV segment, but for a manufacturer like Nissan the disconnect with Indian audiences will have to be bridged before it can expect to garner any sizeable volumes here. ‘Our mandate for the next couple of years is very clear. We are launching niche products like the Murano as a brand building exercise before we can start locally manufacturing here,’ added Sproule.
He also informed that the manufacturer is keen on commencing work on an A-segment offering in the sub- €10,000 category, which will be smaller than the Micra. Work on the same should begin by 2010 at the Chennai facility it has planned with Renault. ‘The ultimate objective by 2012 is to have a sizeable presence here with close to eight models, most of which will be fairly localised and a few big-ticket imports too,’ added Sproule.
Besides, Renault-Nissan has also tied up with Bajaj Auto for introducing a low-cost four-wheeler, a prototype of which was showcased just before the Auto Expo, held in Delhi earlier this year. The feasibility study on the final product will is still underway. When asked whether the eight models up to 2012 will include that project, Sproule said it would be a completely independent venture.
He clarified that Nissan’s presence in the country will be three-pronged. ‘We will introduce our own imports here, manufacture indigenous platforms with our global partner Renault and

provide offerings as a part of independent ventures with Bajaj and Ashok Leyland (for LCVs),’ he informed.
Talking about LCVs, Sproule informed that the tie up with Ashok Leyland is restricted to sub-8-tonne segment. ‘We have no intentions to delve into heavy commercial vehicles segment, which is dominated by local players here,’ he added. Upon asking why M&M, Renault’s partner and established LCVs maker wasn’t considered for the association for commercial vehicles, Sproule contended ‘our assessment of Leyland’s portfolio was that LCV offering would compliment their existing platforms.’

source: www.automonitor.co.in