Ashok Leyland to acquire AVIA truck business unit

Chennai: Heavy commercial vehicles manufacturer Ashok Leyland Limited, the Indian flagship of the Hinduja Group, has signed a framework agreement to acquire the truck business unit of Avia, Prague.

Avia makes the D Line trucks in the 6 to 9-tonne gross vehicle weight (GVW) range and has marketing footprints in Europe. The acquisition covers the facility at the heart of the Czech capital, with an annual production capacity of 20,000 vehicles, which is supported by a state-of-the-art cataphoretic paint shop and R&D facilities.

The sale is subject to the completion of certain conditions as well as corporate and statutory approvals by both Ashok Leyland and Avia. It is expected that the transaction will be closed by the end of August 2006.

"Avia is part of our inorganic growth plan and is a significant step in securing a beachhead in the European Union and the Eastern European markets. The acquisition will also give us a modern, international vehicle for our light and medium commercial vehicle range of trucks for India and other export markets", said R Seshasayee, managing director.

Since their launch in 2001, the D series trucks consisting of 6 tonne, 7.5 tonne and 9 tonne GVW models are marketed in the Czech Republic, Hungary, the UK, Ireland, Italy, Slovakia and Spain. With a width of 2.15 metres, the D series trucks have a modern, compact cabin with both day and sleeper versions. They are powered by 150 hp / 170 hp Cummins ISB engines and feature ZF 5.42 and ZF 6S 850 gearboxes.

In early June, Avia unveiled D120, a 12-tonne model as well as D110 and D100, 11- and 10-tonne models respectively. The new models also feature the all-new 4.5 L Cummins ISB Euro IV engine with Selective Catalytic Reduction (SCR) technology. The new Cummins engines offer power outputs of 140 hp, 160 hp and 185 hp.