A part of the planned investment will also be on engine development. The company is developing six cylinder and four cylinder engines with Austrian firm AVL complying with the Euro IV norms.

“The company will be investing Rs 3,000 crore on the new vehicle plant coming up in Uttarakhand, which will be capable of rolling out 50,000 vehicles and expansion of manufacturing facility at Ennore and the new engine development project,” Ashok Leyland Chief Financial Officer K Sridharan told reporters on the sidelines of CFO Asia Summit here.

He said Rs 1,000-1,500 crore would be raised through internal accruals, while close to Rs 800 crore would be raised from overseas market.

Valeo bid

Meanwhile  Ashok Leyland expressed doubts over its bid acquire French auto component major Valeo citing “complexities.”

“We are still considering it (acquiring Valeo) but we are not very sure whether we will be able to close it or not,” Mr Sridharan said.

Stating that there were ‘many complexities involved,’ he said: “I am not putting any hopes on that deal.”