Ashok Leyland Relocates UK Electric Bus Manufacturing to RAK

Ashok Leyland has relocated the production of its electric buses from the United Kingdom to Ras Al Khaimah (RAK) in the United Arab Emirates. This enables the firm to strengthen its position in the commercial vehicle market and be in an area that is rapidly growing in the EV market for the Middle East.

The move is practical and focused. Ashok Leyland has shifted the UK bus production to RAK to better tie operations and manufacturing into growth regions. The Ashok Leyland plant in RAK already has all the infrastructure and trained people to take on electric-bus production with minimal interruptions. The plant is currently only doing a limited number of electric-specific processes, so the expansion for full EV-bus production will be limited, less than USD 3 million for the expansion. This makes a small additional investment for large operating advantages and Ashok Leyland can expand and scale faster without a lot of capital pressures.

This decision will also enhance supply-chain efficiency. Manufacturing in RAK will mitigate logistical complexity, reduce transport costs and initiate shorter delivery pathways to key markets across the Middle East and Africa, as well as Europe. Collectively, the UAE provides robust policy support for electric mobility, green energy and modernizing industry, which together provide an environment which can help electric bus manufacturing achieve consistent, low-friction growth.

Ashok Leyland's leadership see the relocation as consistent with their long-term electrification strategy. It enables the company to refine operational flexibility, increase global reach and reduce time to deploy new Ashok Leyland electric bus models. The facility in RAK is equipped to support assembly lines for modular vehicle platforms, upgraded stations for assembly and battery installs, as well as tooling to support EV-ready technologies - all features that enable the company to increase adaptation of changing market vectors.

This move also reflects larger global trends. Manufacturers around the globe are restructuring their production networks to be in areas with longer-term policy stability and momentum in EV uptake. With governments in the Middle East investing heavily in clean transport and infrastructure, RAK will serve as a natural base for expanding electric mobility business.

In principle, the move to RAK represents more than a production relocation. The move presents a structural shift in Ashok Leyland’s global strategy. The Ashok Leyland RAK facility is now strategic to the success of the Company’s electric-mobility strategy and further strengthens the company's leadership position in a transitioning commercial vehicle industry.

For more articles and news, stay updated with 91trucks. Subscribe to our YouTube channel and follow us on Facebook, Instagram and LinkedIn for the latest videos and updates from the automotive world!