Ashok Leyland, on 28 April 2003, signed a technology transfer agreement with Hino Motors of Japan for the manufacture of 260 HP, eight-litre displacement engines (called J Series) in India. These high power engines would be used for tractors, passenger buses and construction equipment.

Ashok Leyland, at present, offers engines up to 180 HP only. The company expects demand for high-powered engines to grow as the National Highway Development Programme progresses.

Although the project outlay has not yet been finalized, the investment programme will have the following broad outline:

·          The investment will be made in a new facility in Tamil Nadu. All the three units of the company are in Tamil Nadu (Ennore, Hosur-I and Hosur-II)

·          The initial Indian content in the engines will be 30 per cent to be raised to 90 per cent in five years

·          Trial production to commence during 2003-04

·          Over the next two years, the company plans to produce 2500 units annually