An exclusive report from MOTORINDIA
Nissan Ashok Leyland Technologies Ltd. is a joint venture set up in 2008 by Ashok Leyland of the Hinduja Group and Nissan Motor Company of Japan. The main objective of the joint venture was the development of vehicles for both the partners in a phased manner. Interestingly, the DOST, with an Ashok Leyland badge, the first product to roll out of the JV project, was a resounding success. This achievement was possible with the all-out efforts of Nissan-AL Technologies, which has also seen the new vehicle garner impressive market share figures in the eight states where the product was launched during the last one year. To know more about the success of the LCV, MOTORINDIA recently spoke to Dr. N. Saravanan, Chief Executive Officer, Nissan Ashok Leyland Technologies Ltd.
Dr. Saravanan revealed that his firm has several ambitious plans for the future. For instance, the second product from the AL-Nissan stable, namely, Nissan Evalia, is expected to hit the Indian roads by the end of September 2012. This will be followed by the CNG variant and the passenger version of the DOST. Towards the close of 2013, Ashok Leyland will introduce Style, the JV’s next LCV model, followed by the launch of a variant of the Evalia. In two years’ time, the JV will also develop buses and trucks in the 6-tonne category with the main objective of customising all the vehicles with local components.
According to Dr. Saravanan, the indigenisation drive has helped in considerably reducing the vehicle cost. He attributed the success of DOST to its technology, design and the wide sales network, supported by Nissan’s process technology. Even before the launch of the DOST, the company put the vehicle through a two million kilometre test-run, apart from vigorous testing of around 5,000 components. Also, the JV has richly benefited Nissan for the development of vehicles of Japanese quality at Indian cost in the shortest possible time. Ultimately, what has driven the success of the joint venture is the frugal engineering system. The products developed at the JV plant also offer scope for export of vehicles to different countries. For instance, Ashok Leyland has plans to export vehicles to Bangladesh and Sri Lanka, whereas Nissan can tap the potential of markets like Thailand and Indonesia.
State-of-the-art new plant
Dr. Saravanan further disclosed that under the JV agreement, products have been initially developed at AL’s Hosur and Renault Nissan’s Oragadam plant. In order to meet the requirements of the company’s new product development, another state-of-the-art manufacturing plant is planned at Pillaipakkam on the outskirts of Chennai. This plant will have all the required facilities, including a modern lab, test shop, production shop, etc. The company is awaiting final approval for the scheduled construction at the new plant next year.