No plans to enter passenger car biz: Ashok Leyland

Ashok Leyland to not enter passenger car segment
Ashok Leyland, which is a commercial vehicle manufacturing arm of the Hinduja Group, has said that the company does not intend to foray into India's fast growing passenger car segment. The firm was believed to be mulling a venture with Japan based auto company, Nissan Motor to develop a very low cost passenger car to match the Rs 1 lakh Tata Nano. However, the proposition was scrapped. 

Nissan believes that entering a car market just on the basis of price is very challenging and developing ultra low cost cars is a difficult venture. The Indian commercial vehicle major is looking to use Nissan's expertise in developing other products. The Indian firm had signed three separate partnership deals in May 2008 with the Japanese auto major for the manufacture of a light commercial vehicle, powertrain manufacturing, and equipment development.

Ashok Leyland and Nissan Motors launched their first 1.25 tonne small commercial vehicle on Friday. The vehicle has been named “Ashok Leyland Dost" and has been manufactured from the Hosur plant of Ashok Leyland. This is the first joint product of the Ashok Leyland and Nissan Motor venture.

Read more about: ashok leyland, automobile, bse, nse
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