The joint venture will initially manufacture backhoes and wheel loaders and will market them in India and abroad. The range will subsequently be expanded to include a full line of construction equipment. Pilot production will commence, as scheduled, from October 2010 and serial production by January 2011 at a manufacturing facility to be located near Chennai.
As the second largest commercial vehicle manufacturer in the country, Ashok Leyland brings its expertise and broad, pan-India distribution network, while John Deere, the world’s largest manufacturer of equipment for agriculture and forestry, will provide its technical know-how and vast experience in the construction equipment business.
The $2.5 billion Indian construction equipment industry has been on a growth trajectory and envisages 20 per cent year-on-year growth over the next five years.
