Ashok Leyland Financial Analysis Essay Example

was largely due to the reduced demand especially in the Middle East (economic downturn), where volume dropped from 2,525 units in 2008-09 to 868 units in 2009-10 i.e. a fall of 66 percent.

Future plans

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. The company plans to penetrate European markets hard-hit by the recession. Toward this end, it has formed a Joint venture with the Czech firm Avia.

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 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.