Ashok Leyland-Nissan JV designing 3 platforms

The joint venture between Ashok Leyland, the second-largest commercial vehicle manufacturer in India, and Japan’s Nissan is planning to launch multiple passenger products in the next 2-3 years in its bid to expand into newer segments.

The venture is looking at introducing passenger vehicles in segments such as light commercial vehicles (LCVs) and multipurpose vehicles.

Currently, the two companies are jointly working on three platforms — LCV, multi purpose vehicle and a small truck.

The company launched its 1.25 tonner LCV - Dost and is soon planning to launch its passenger variant, which will be a 7-8 seater. The venture will launch an MPV (based on Nissan’s NV200 platform) with 2-3 variants in the next 12-18 months.

The third small truck will be based on Nissan’s Atlas platform, which will also sport a passenger variant. 

The joint venture is setting up an entirely new dealer network for selling LCVs and has identified dealers in South India and Maharashtra. Further dealer expansion will depend on the ramp-up of LCV capacity. “In 6-7 months, we plan to have 60 dealers pan India,” said Nitin Seth, executive director - LCV, Ashok Leyland.

As far as branding is concerned, the LCVs will be branded under the Ashok Leyland badge. V Sumantran, executive vice chairman, Hinduja Automotive, said, “The second MPV platform will have two variants. One will be branded under Ashok Leyland, while the other will be Nissan branded. Even for exports, the products will be branded as per the presence of either of the companies.” 
The two companies had formed the JV in 2007.

As part of the initial investments, the venture is spending Rs1,200 crore, which includes development of first two platforms, while the company is yet to decide the investment to be made on its third platform.

The Dost LCV will be manufactured at company’s Hosur plant with a capacity of 55,000 units annually.

The company will also manufacture the planned vehicles at its upcoming greenfield plant near Chennai.