Ashok Leyland has unveiled a multi-pronged global expansion strategy spanning Indonesia and Saudi Arabia while accelerating investment in its electric mobility platform, as per news reports.
Ashok Leyland has signed an MoU with PT Pindad to jointly develop electric buses and defence vehicles for Indonesia’s domestic market.
This marks Ashok Leyland’s formal entry into Indonesia, one of ASEAN’s largest automotive markets, currently dominated by Japanese manufacturers.
Chairman Dheeraj Hinduja said, “We have just signed this MoU, and the intent is to build a significantly stronger presence in Indonesia. It is a large and attractive market, and this opportunity enables us to focus not only on electric buses but also on defence products.”
He added, “This collaboration gives us access to a new market,” noting that equity structure and manufacturing arrangements are still being finalised.
In the Middle East, the company will establish an assembly unit in Saudi Arabia through its UAE-based subsidiary. The Ras Al Khaimah plant in UAE has surpassed its installed capacity of 6,000 units per annum and is operating at over 100% utilisation.
CFO K M Balaji said, “We have crossed 100% utilisation at Ras Al Khaimah. We expect sales of around 7,000–8,000 vehicles this year, while demand is 30%–40% higher than our current capacity.” Vehicles exported from UAE to Saudi Arabia currently attract 7.5% customs duty.
Balaji added, “Vehicles shipped from Ras Al Khaimah to Saudi Arabia attract customs duty. Manufacturing locally will reduce costs and help us qualify as a preferred supplier for government orders, where demand is expected to be robust.”
The Saudi facility will primarily serve the domestic market. The investment size has not been disclosed and will be funded through internal accruals and borrowings.
Alongside global expansion, Ashok Leyland has committed ₹600 crore towards OHM, its e-mobility-as-a-service platform. Of this, ₹300 crore has already been infused and the remaining ₹300 crore will be deployed in phases based on business requirements.
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As of February 13, 2026, at 9:47 AM, Ashok Leyland Ltd share price is trading at ₹209.22 per share, reflecting a decline of 0.85% from the previous closing price. Over the past month, the stock has gained by 12.67%.
With expansion into Indonesia and Saudi Arabia, capacity augmentation, and ₹600 crore allocated to electric mobility, Ashok Leyland is advancing its global footprint alongside record quarterly revenue and profit performance.
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Published on: Feb 13, 2026, 12:34 PM IST
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