Japanese car major Nissan is in talks with Hinduja firm Ashok Leyland for developing a small car for the global market that could be priced around $4500-5000.
The company, which is also a partner in the development of an ultra low cost car with Bajaj Auto and Renault, said the project is yet to find a solution to produce such a cheap car. ?We have a formal agreement with Ashok Leyland for making light commercial vehicles in India…in addition to that we also use Ashok Leyland?s engineering services for various purposes. At the moment, we are talking to them and many other partners in China, Indonesia…for a price centric vehicle,? Nissan Motor Co executive vice-president Collin Dodge told reporters at the Geneva Motor Show.
He said the global small car is aimed at tapping the price bracket of $4500-5000, which is set to grow substantially and account for around ?20% of the total global car sales in due course of time.?
?There may be an opportunity with Ashok Leyland on a price centric car,? Dodge added.
He said none of the big global carmakers like Volkswagen, General Motors or Ford could produce a small car at such a cheap price without partnering with local firms already engaged in low-cost production. Asked which country will be the lead market for such a small car, Dodge said, ?China will be the number one as the segment is growing in a big way there with about 2 million units. India will be the second market.?Other countries like Indonesia, Vietnam, Brazil, Colombia and some more Latin American nations are also possible markets, he added. In India, the car could be positioned between Tata Nano at the lower end and Maruti Swift at the upper end.
At present, Nissan and Ashok Leyland are partners in a light commercial vehicles joint venture. The two firms had announced three JVs in 2007 for making LCVs, powertrains and developing technology, and setting up a plant near Chennai, envisaging a total investment of Rs 2,300 crore.