The Japanese car company Nissan is moving to the horizon of small car in alliance with the Indian Ashok Leyland. Costing @Rs2.5 lakhs, the car will be on par with Tata Nano. Nissan is already in association with Renault and Bajaj for a small car which is getting ready for 2011-12. This, according to Nissan’s VP, is a part of negotiations with the like minded partners in China, Indonesia and Japan.
The move is to concentrate on the small car which gives a lot of scope. Big car companies like VW, GM and Ford do not design cars on this price. And for this car, China will be the most targeted market, followed by Vietnam, Brazil, Indonesia, Colombia and Latin American countries. The new car will be in the mid range between Nano and Maruti Swift.
Nissan and Ashok Leyland are in the pact on 51:49 basis since 2007 involving an investment of Rs2300 crore for LCVs, trucks of 3 tonnes and 6 tonnes. Till they get the joint manufacturing plant, the companies will produce cars in their own units at an annual target of 1 lakh. The partners are under an MoU with the Government of Tamilnadu for an integrated plant near Chennai.