Hinduja flagship Ashok Leyland is set to put an aggressive focus on the African

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market as the country’s second largest commercial vehicle (CV) firm sees the region as one of the most promising future markets.

The company is preparing to launch its subsidiaries in some markets as also expand its presence in the existing locations in the region. Ashok Leyland has set an ambitious target to export 3,000-4,000 units of trucks and buses to the African nations during the current fiscal. “We see African region as one of the potential future markets. In the immediate term, we will be focusing on South Africa, Nigeria, Kenya and Egypt,” K Sridharan, CFO, Ashok Leyland told Financial Chronicle. The company has already started penetrating into South African and Nigerian markets. “We’ve made a good beginning in Nigerian market with a BRT (bus rapid transit) system in that country, besides providing technology for fleet management,” said Vinod Dasari, MD, Ashok Leyland.

The company hopes to follow a similar model in other countries in Africa. It has sold about 1,000 units in Nigeria during the last fiscal and sees the potential to sell 1,000-1,500 units a year in that country in the immediate term. Ashok Leyland will sell its vehicles through local partnerships and has roped in potential dealer partners who can also arrange for local financing for buying vehicles besides sales and services.

The company will also focus on Kenya and Egypt though the plans are getting slightly delayed in Egypt due to domestic issues. “We see phenomenal growth opportunities in Egypt which is an important region linking European and West Asian businesses,” said Sridharan.

Ashok Leyland has a bus assembly unit at Ras Al Khaimah in Dubai with a capacity to make over 2,000 units of buses and trucks a year that can feed West Asian, African and other nearby markets. It has also developed new ‘Neptune’ series of engines with options to offer upto 380 HP from the existing 230 HP level. Earlier non-availability of above 230 HP engines was a hindrance for truck exports for the company.

Meanwhile, several Indian auto firms such as Tata Motors and Mahindra & Mahindra have started tapping African region, which has about one billion population with more young people and growing middle class on the back of change of approach by the governments to encourage private investments. Car markers like Hyundai and Ford have been selling ‘Made in India’ cars in African market.