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New Delhi, Jan. 9 Hinduja Group’s Indian flagship company Ashok Leyland said it did not have an objection to a possible Renault-Bajaj tie-up for a light commercial vehicle even as the company is inching close to finalising the site for the plant to be set up in joint venture with Nissan Motors.

The Renault-Nissan combine has been announcing a rash of new joint ventures for manufacturing passenger and commercial vehicles in India.

It may be recalled that Ashok Leyland and Nissan Motor Company had signed a Heads of Agreement (HoA) for the formation of three joint venture companies supporting the Light Commercial Vehicle (LCV) business three months ago. The partnership will include the development, manufacture and cooperation for distribution of LCV products under both the Ashok Leyland and Nissan brands.

“Our relation with Nissan is very firm. It is intact, strong and easy. We do not have an objection if Nissan is tying up with competition,” Mr R. Seshasayee, Managing Director, Ashok Leyland said, at the ninth Auto Expo here on Wednesday.

On the site for its new plant under the joint venture with Nissan, he said, “We earlier had three options. Now we have narrowed them down to two — Andhra Pradesh and Tamil Nadu. Tamil Nadu is likely to be the preferred State for the plant, as we already have a manufacturing unit there. A final decision to this end will come by January end.”

The plant will manufacture light commercial vehicles up to six tonnes payload. Ashok Leyland-Nissan joint venture will produce three types of light commercial vehicles — 1.2 tonnes, two tonnes and three tonnes — which will come from Nissan’s platform but will be re-engineered to suit Indian conditions.

Mr Seshasayee said the group will introduce 22 new products during 2008-09.

“We expect the next fiscal (2008-09) to be a turnaround year. After a six per cent decline in the commercial vehicle segment this year, he said the coming year will put it back on a growth path.”

On exports, he said Ashok Leyland expects exports to grow almost 39 per cent in the next financial year.

“With our new products and enhanced range we expect exports to grow to 12,500 units in fiscal 2009 as against 9,000 units this fiscal,” he said.

The company has launched ‘Alert’, a comprehensive telematics solutions for the Indian commercial vehicle market.

Alert will offer two services namely vehicle tracking and passenger information system.

More Stories on : Alliances & Joint Ventures | HCV/LCV/Tractors

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