Ashok Leyland Sets Up Saudi Arabia Subsidiary For Bus And Truck Assembly

Ashok Leyland has set up a new step in its overseas plan with a subsidiary in Saudi Arabia for a vehicle assembly plant for buses and trucks.

In a filing with the stock exchanges on 27 November, the company said that Ashok Leyland UAE LLC, a subsidiary of the company, has created Ashok Leyland Saudi Company in the Kingdom of Saudi Arabia. The company has put in 5,00,000 Saudi Riyal as initial share capital.

The disclosure was made to the National Stock Exchange and BSE under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. 

Ashok Leyland Saudi Company is set up as a one person limited liability company in Saudi Arabia. The date of incorporation in Saudi Arabia is 30 June 2025. The registered share capital is 5,00,000 Saudi Riyal and the paid-up share capital is also 5,00,000 Saudi Riyal.

Ashok Leyland UAE LLC holds the entire share capital of the new unit. The filing states that the Saudi entity will work in the automobile manufacturing space.

The company said the Saudi unit has been formed to set up a vehicle assembly plant for buses and trucks in Saudi Arabia. The plant will serve the local market in Saudi Arabia and export markets in the region.

The filing notes that the required clearances from the Ministry of Investment and the Ministry of Commerce in Saudi Arabia are in place for the incorporation of the unit. The investment has been made in cash.

The move gives Ashok Leyland a direct presence in Saudi Arabia through a manufacturing-linked entity. The structure places the Saudi company under the UAE arm, which is a subsidiary of the listed Indian company. The group expects the new unit to support bus and truck supply for domestic demand in Saudi Arabia and for export orders from that region.