Friday, 5 August 2011

Ashok Leyland shelves Car project




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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