Automotive

Increasing Trade Relation With South Sudan Boosts Truck Demand And Benefits Cos Like Ashok Leyland

Increasing Trade Relation with South Sudan boosts truck demand and benefits Cos like Ashok Leyland

South Sudan, which is the youngest nation on the African continent, is likely to witness significant economic growth in the next few years as its expanding oil market is expected to reach up to $11 billion by 2032. As a result of this projected rise in petrodollar earnings, Indian automobile companies such as Dheeraj Hinduja-led Ashok Leyland, Tata Motors, Maruti Suzuki and Mahindra & Mahindra have started to gear up to increase their offerings in the African market.


After gaining independence in 2011, following a referendum, South Sudan has been gradually increasing its trade and political relations with India. However, if you compare volumes of goods traded between India and other African nations, the overall trade between the world’s most populous nation and Africa’s youngest nation is very modest. The trade relation between South Sudan and India began in 2011 itself, as India was one of the first countries to recognise independent South Sudan, and the then Vice President Mr. Hamid Ansari attended the Independence Day celebrations in Juba on 9 July 2011. Since then, South Sudan and India have always enjoyed cordial and friendly relations.


Building on this trade momentum, Dheeraj Hinduja, son of India’s leading business leader Gopichand Hinduja, has directed India’s truck maker to explore new opportunities to expand operations, including setting up new dealerships and service centres across the African continent, including in South Sudan, Chad, Uganda, and Ethiopia. These African countries have very good relationships with India, and legacy Indian business houses such as the Birla, Piramal and Hinduja families enjoy trust and respect in these markets.


Going forward, as the electric vehicle segment is expected to dominate the sector, South Sudan, with over 300 days of bright sunlight throughout the year, is also looking at harnessing solar energy to establish charging stations across the country. This technology is of great benefit to those whose remote location makes it difficult to lay long-distance transmission lines.


This higher focus on solar power opens new opportunities for companies like Ashok Leyland, which, under the guidance of its Executive Chairman Dheeraj Hinduja, is working on developing and offering electric-powered vehicles for developing markets such as India, Sri Lanka, and South Africa, and these EVs can also be very useful in underdeveloped markets such as Chad and South Sudan. 


Despite gradual improvement in trade relations and political relations between South Sudan and India since the country came into existence in 2011, the bilateral trade volumes continue to be relatively low as compared to trade that exists between India and other countries in Africa.