Ashok Leyland's Optare inks pact with UK firm

UK arm gets order for 50 new buses from Dawsonrentals as part of the deal

Under this, Optare would supply 50 Solos vehicles over the next six months to Dawsonrentals.

The partnership allows Dawsonrentals to access Ashok Leyland Ltd (ALL)'s international sales force to facilitate the disposal of its used vehicles in the right-hand-drive market.  On the other hand, Dawson could create an outlet for its used vehicles in countries where the initial purchase price may be an obstacle to the acquisition of brand new buses. It will also reduce the excess of ageing vehicles in the UK market, a release stated.

Paul Sainthouse, managing director, Dawsonrentals, said: “Our rental business depends upon our success in marketing our used vehicles and this agreement gives us access to new world markets.”

Optare is one of ALL’s key acquisitions with an aim to penetrate into the European market. In 2010, Ashok Leyland acquired a 26 per cent stake for around Rs 28 crore and in 2011 it further increased the stake in the company.

The acquisition was one of the key drivers to support its ambition of becoming the top five bus companies in the world.

Last week, the company said it had become the fourth largest bus company in the world.