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Willowvale, Ashok Leyland seal US$5m vehicle assembly deal
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Willowvale Motor Industries (WMI) has earmarked US$5 million to launch its newly signed assembly partnership with Indian vehicle manufacturing giant Ashok Leyland, paving the way for the local production of buses and trucks in Harare.
The funds, provided through WMI's shareholder Mutapa Investment Fund, will be used to procure initial assembly kits under the first phase of the deal. Ashok Leyland will subsequently supply kits on a pay-later basis, tied to market demand.
The agreement, first initiated in 2021 but stalled, was officially signed during Vice President Dr Constantino Chiwenga's working visit to India for the 20th India Africa Business Conclave.
Industrial Development Corporation of Zimbabwe (IDCZ) chief executive officer Edward Tome confirmed the financing and outlined localisation plans. "The US$5 million will be revolving over time, and we will also go into further discussions with Ashok Leyland to continue supplying us the kits. The agreement ensures that we will achieve a minimum of 30 percent local component manufacturing, with potential to scale up to 50 percent," said Mr Tome.
He highlighted that Zimbabwe could immediately begin producing bus and truck seats and upholstery locally, before expanding to more complex components in line with Ashok Leyland's specifications.
Ashok Leyland's vice president for corporate affairs, Yash Pal Sachar, said the company views Zimbabwe as a strategic partner for expansion in Africa. "We have big plans for local assembly of buses and trucks at Willowvale. In phase two, we also intend to introduce our electric mobility wing, Switch Mobility, which has already rolled out electric buses in India and London," he said.
The deal is expected to strengthen Zimbabwe's automotive industry, cut imports, and position the country as a supplier of vehicles to regional markets.
The funds, provided through WMI's shareholder Mutapa Investment Fund, will be used to procure initial assembly kits under the first phase of the deal. Ashok Leyland will subsequently supply kits on a pay-later basis, tied to market demand.
The agreement, first initiated in 2021 but stalled, was officially signed during Vice President Dr Constantino Chiwenga's working visit to India for the 20th India Africa Business Conclave.
He highlighted that Zimbabwe could immediately begin producing bus and truck seats and upholstery locally, before expanding to more complex components in line with Ashok Leyland's specifications.
Ashok Leyland's vice president for corporate affairs, Yash Pal Sachar, said the company views Zimbabwe as a strategic partner for expansion in Africa. "We have big plans for local assembly of buses and trucks at Willowvale. In phase two, we also intend to introduce our electric mobility wing, Switch Mobility, which has already rolled out electric buses in India and London," he said.
The deal is expected to strengthen Zimbabwe's automotive industry, cut imports, and position the country as a supplier of vehicles to regional markets.
Source - The Herald
