Nissan and Ashok Leyland Small car deal trashed
Indian small car market is on a all time high with the potential buyers increasing in this segment. To explore the already crowded market, national and international manufacturers are looking for tie-ups or establishing themselves as an independent entity. Ashok Leyland, India's second largest commercial vehicle maker has scraped dialogues with Nissan Motors, Japan's fourth largest auto manufacturers on building the inexpensive compact cars.
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Indian small car market is on a all time high with the potential buyers increasing in this segment. To explore the already crowded market, national and international manufacturers are looking for tie-ups or establishing themselves as an independent entity.
Ashok Leyland, India's second largest commercial vehicle maker has scraped dialogues with Nissan Motors, Japan's fourth largest auto manufacturers on building the inexpensive compact cars. Leaders in the truck and bus manufacturing, Leyland was in conversation with Nissan to make a car which is subsequently below Nissan Micra to enter the compact car market of India. If the deal would have cracked, it could have been an easy entry for Nissan.
Dheeraj Hinduja, Chairman, Ashok Leyland, confirmed that the car deal is not cracking with Nissan. But the car project is not shelved yet. He also mentioned, that, the market is huge for the compact cars and there are lots of challenges to be faced. If any company plans to bring in new technology, Leyland will be interested and supportive.
Nissan, the Japanese auto makers, is looking for investing in the compact car segment in India. With the increasing number of demand and a market of 70 per cent, Nissan is keen on hunting the small segment car market.
Nissan's eagerness to enter the Indian mini car segment is quite visible as the company is earnestly making efforts and is looking for joint ventures but nothing has been confirmed yet.
Nissan exports more than 50,000 Maruti A-star as Nissan Pixo in the European market. Volkswagen's purchase of 20 per cent equity and entering Suzuki has created a ripple in the export alliance of Maruti Suzuki and Nissan. If the deal is withdrawn, it will substantially benefit Volkswagen as it can fill the white space of the compact cars and Nissan will eventually face losses, as Nissan Micra will be the only car left in the European Market.
However, Leyland has signed a deal with Nissan as a joint project of making light passenger and cargo commercial vehicles. And by next year, they believe to launch one of the wheelers.
Nissan is also venturing with Bajaj Auto, the two-wheeler makers for making a car of Rs. 2 lacs. Nissan will only market the cars in India and abroad while the manufacturing will be done by Bajaj.
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