More than half a century after it exited the passenger vehicle market, Hinduja Group-owned Ashok Leyland is set to make a come back with a multi-purpose vehicle (MPV) for the mass market. The MPV is being developed with the help of Japanese automaker Nissan Motor Company, under their joint venture company Ashok Leyland Nissan, a 51:49 partnership between Ashok Leyland and Nissan Motor.
To put it simply, the JV will see first a pick-up commercial vehicle (F24) launched with Ashok Leyland badge next year, followed by a Nissan badged MPV in 2012. Later in 2013, the MPV platform will see a mass market version with the Ashok Leyland badge.
Confirming the plan, Kiminobu Tokuyama, managing director and chief executive officer, Nissan Motor India, said, ?Our MPV that comes in 2012 start will be targeted for the premium market, while the one with the Ashok Leyland badge will be for mass market.? He added that the Nissan MPV will compete against the Toyota Innova in the market and that ?there will be a significant difference between the MPV with Nissan badge and the Ashok Leyland badged MPV.
?We are developing the MPV for passenger usage and not necessarily for commercial usage. But it can fit for taxi and hotel fleet requirements as well,? said Tokuyama, adding that the MPV is targeted at the Indian market than the exports.
The Nissan MPV will be produced at the company’s plant in Oragadam near Chennai in Tamil Nadu with its French alliance partner Renault. Ashok Leyland will produce its MPV at its own plant in Hosur near Chennai in Tamil Nadu. ?This will be the first time that Ashok Leyland will be getting into the utility vehicle (UV) segment and looks they are following Tata Motors’ way. Tata Motors got into the passenger vehicle space with UVs first and later took up to full-fledged cars like Indica and Nano,? said an auto analyst, adding that this could be Ashok Leyland’s plan with Nissan. The Ashok Leyland MPV is expected to compete against GM Tavera and Tata Motors’ Sumo Grande in the market, the analyst said.