Ashok Leyland shelves car project

4th Aug 2011 7:00 am

No small car for Ashok Leyland. The company to focus on commercial vehicle segment.

 Ashok Leyland has decided not pursue its compact car project any further. The company, along with its joint-partner Nissan, had earlier decided to explore the possibility of bringing out a car that would target the compact market.

 
A senior Hinduja Group executive attributed this to the intense competition in the compact car segment. Ashok Leyland’s decision to stay away from the car business may be a wise move, as it has just entered into an increasingly competitive segment of light commercial vehicles with its LCV, the Dost. It would rather utilise its resources to get a foothold in a business which is an extension of its core M&HCV business, rather than venture into a new territory altogether.
 
The Group is also learnt to be looking at new opportunities for business from the aviation industry. The Hinduja-owned Defiance Technologies is scouting for a partnership or acquisition in this space, and an announcement in this regard may come in three to four months.

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