Ashok Leyland Expands Globally, Boosts Electric Vehicle Plans

Ashok Leyland has announced a major step in its international expansion strategy, signing a memorandum of understanding with Indonesia’s state-owned PT Pindad. The collaboration aims to co-develop electric buses and defence vehicles, marking Ashok Leyland’s first entry into Indonesia, one of ASEAN’s largest automotive markets.

Dheeraj Hinduja, Chairman of Ashok Leyland, stated that the partnership will enable the company to build a stronger presence in Indonesia while focusing on both electric mobility and defence solutions. Details such as equity structure and manufacturing arrangements are still being finalised.

Saudi Arabia Facility to Address Capacity Constraints

In the Middle East, the company plans to establish a new assembly unit in Saudi Arabia through its UAE-based subsidiary. This comes as the Ras Al Khaimah plant in the UAE has already exceeded its 6,000-unit annual capacity, with demand 30–40 percent higher than current production levels.

The Saudi assembly facility will cater primarily to the domestic market, helping the company avoid the 7.5 percent customs duty on vehicles exported from the UAE. Local production is expected to reduce logistics costs and improve eligibility for government procurement programmes in Saudi Arabia, where demand is forecast to remain strong.

Boosting Electric Vehicle Investments

Ashok Leyland is also scaling up its investments in electric mobility, committing Rs 600 crore towards its OHM e-mobility-as-a-service platform. Half of this investment has already been infused, with the remainder to be deployed in phases according to business requirements.

Strong Financial Performance Supports Growth

The company’s global and EV expansion plans come amid robust financial results. In Q3 FY26, Ashok Leyland reported its highest-ever quarterly net profit of Rs 796 crore, a 4 percent increase year-on-year, even after accounting for a one-time Rs 308 crore charge related to the new Labour Code. Revenue surged to Rs 11,534 crore, up from Rs 9,479 crore in the same period last year, driven by strong double-digit growth across business segments.

With strategic moves into high-potential international markets, combined with aggressive investments in electric mobility, Ashok Leyland is positioning itself for long-term growth and leadership in both conventional and emerging vehicle segments.