Nissan looks to rope in Ashok Leyland for global small car
Press Trust of India / Chennai Jun 01, 2010, 18:12 IST
Japanese auto major Nissan Motor Company today said it may partner with Hinduja Group flagship firm Ashok Leyland for launching a global compact car in India.
"That (compact car) is a segment in which we want to compete. We are in the conceptual phase... We are still talking to a number of potential partners," Nissan Motor Company Senior Vice-President (Corporate and Product Planning) Andrew Palmer told reporters here.
He was in the city to announce Nissan's detailed roadmap for launching light commercial vehicles in the country by 2011 in partnership with commercial vehicle-maker Ashok Leyland.
"For this market (India), we haven't decided (about the partner), but clearly, one of very good candidates is my colleague sitting next to me", Palmer said referring to Hinduja Automotive Executive Vice-Chairman V Sumantran.
Palmer, however, said that they have not decided on which markets to enter and also with what products at what time.
Earlier in March, Nissan had announced that it was talking to Ashok Leyland for developing a global small car that could be priced around $4,500-5,000.
The company's Executive Vice-President, Collin Dodge, said China would be the lead market for such a car, followed by India.
Other countries like Indonesia, Vietnam, Brazil, Colombia and some more Latin American nations could also be possible markets for the global small car.
In India, the car could be positioned between the Tata Nano at the lower end and Maruti Swift at the upper end and would compete with the likes of the Alto from Maruti Suzuki, Dodge had said.
Commenting about their operations in the South Korean market, where the company had intended to buy cash-strapped SsangYong Motor, Palmer said Nissan would decide about its operations in the country after the bidding process is complete.
"Nissan is leading the bid because we have main interest... A consortium is bidding for the company and Renault and RSM (Renault Samsung Motors) are also part of that," he added.
The Japanese firm's interest in the South Korean market is driven by the fact that SsangYong has "the capacity" and the market is booming.
Mahindra & Mahindra has also placed a bid for the troubled South Korean company, which is estimated to be worth up to $500 million.
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