Hinduja flagship Ashok Leyland is looking at marching overseas and is packing everything from components to light commercial vehicles for its overseas jaunt.

The company is talking to Japanese companies to share technology, develop a new product range jointly and help build a Light Commercial Vehicle (LCV).

Ashok Leyland is also on the prowl to buy American and European auto component companies.

Leyland's Rs 550-600 crore capital spending this year will fund capacity upgradation from 77,000 vehicles to 100,000 vehicles.

Sources say that the group is also eyeing the one-tonne pick-up segment, but for the moment, it is working on plans to get into light commercial vehicles.

"Our priority will be to consolidate our position in the HDV and MDV category with focus on vehicle design. We will get into LCVs only if the ROI is good enough," said R Seshasayee, CEO, Ashok Leyland.

China presence

It seems Leyland is taking a leaf from archrival Tata Motors' book.

While Tata Motors is gearing up to enhance its competitiveness through large-scale sourcing from China, Leyland wants to go a step further and set up a manufacturing facility in China, a market which is five times the size of the domestic market.

"China is a difficult market to penetrate without a local player," said Seshasayee.

The Hinduja group does harbour dreams to get into the passenger car segment but the top management feels that that there is enough headroom for expansion and growth within the commercial vehicle category itself.

The challenge for the management would be reduce the gap with industry leader Tata Motors both in terms of sales as well as operating margins.