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Home arrow News arrow Automotive arrow Ashok Leyland and Nissan unveil their first LCV for India - DOST
Ashok Leyland and Nissan unveil their first LCV for India - DOST Print E-mail
Written by R. Kurudamannil   
Wednesday, 30 March 2011
Chennai: Ashok Leyland and Nissan Motor Company unveiled their first Light Commercial Vehicle (LCV) – the Ashok Leyland DOST. The product will be launched to the market in the second quarter of FY 2011-2012.

"Indegenisation of the project is close to 100% and this will play a role in pricing the product competitively," said Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd.

Three different variants of the vehicle are planned on the same platform. The company is targeting the local market initially and hopes to commence exports to the Middle East, South Africa etc by 2012.

The vehicle is powered by a 55 HP high torque, 3 Cylinder, Turbo Charged, Common Rail Diesel engine and has a payload capacity of 1.25 Tons.

The original plan was to roll this vehicle out from a green-field facility in Pillaipakkam, but due to the delay in the government of TN allotting the land, the JV went ahead with the project by using the existing facilities of Ashok Leyland at Hosur and Nissan's plant at Oragadam.

By utilizing the existing facilities of Nissan and Ashok Leyland the project cost was halved to approximately Rs. 1150 crores from the initial planned outlay of Rs. 2300 crores.

All existing and future project costs have been and will be shared in the future by both partners on a 50-50 basis.

The engines are currently being built at Ashok leyland, Hosur and the Body at Nissan, Oragadam.

Current capacity is built for 150,000 units per year and the current market size is approximately about 280,000 units per year. This segment is expected to grow at about 20% over the next few years.

The JV expects to move into the greenfield project at Pillaipakkam in the next 3 years for Phase-2 of the project, which would be a LCV that would be sold under the Nissan brand.

Phase-3 of the project is another vehicle which would be sold under the Ashok leyland banner but neither Dr. Sumantran nor Dr. Andy Palmer could give a timeline and capex cost for this.

The Ashok Leyland DOST will be available through a newly developed LCV Exclusive network to give customers a a new level of experience.

 
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