Ashok Leyland to establish Indonesia unit, deepen Pindad partnership
Saturday, May 30 2026 - 10:46 AM WIB
By Rara Suratmi
Indian commercial vehicle manufacturer Ashok Leyland has approved the establishment of a wholly owned subsidiary in Indonesia, marking its formal entry into Southeast Asia's largest automotive market and advancing plans to jointly develop electric buses and defense vehicles with Indonesian state-owned defense company PT Pindad (Persero).
Ashok Leyland's board approved the incorporation of the Indonesian unit on May 28 as part of the company's strategy to expand its global footprint, the company said in a notice.
The new subsidiary is expected to support collaboration with Pindad in developing electric buses for public transportation as well as specialized vehicles for defense applications, while facilitating technology transfer between the two companies.
The move follows a memorandum of understanding signed by Ashok Leyland and Pindad in Bandung on Feb. 3 to jointly develop electric buses and defense vehicles tailored to Indonesian market requirements.
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Under the agreement, the companies agreed to collaborate on electric-powered buses for public transport and special-purpose defense vehicles, leveraging Ashok Leyland's experience in commercial vehicles and international operations across more than 50 countries.
At the signing ceremony, Pindad President Director Sigit P. Santosa described the partnership as a strategic collaboration and said the companies would move quickly to begin technical work.
Ashok Leyland's President for International Operations, Defence, LCV and PSB, Amandeep Singh, said the partnership would enable the company to develop products suited to Indonesia's infrastructure and transportation needs.
Indonesia is one of the largest automotive markets in ASEAN, and the new subsidiary will expand Ashok Leyland's presence beyond commercial transportation into defense and mobility solutions, the company said.
Editing by Reiner Simanjuntak