Ashok Leyland to use Nissan-Renault’s Chennai facility

May 15th, 2009 - 11:01 pm ICT by IANS  

Chennai, May 15 (IANS) Ashok Leyland Nissan Vehicles, whose proposed plant here to make commercial vehicles has been delayed due to land acquisition problems, may use the car manufacturing facility of Nissan-Renault, being set up near here, to roll out trucks, a top official said.
Ashok Leyland Nissan is joint venture between India’s Ashok Leyland and Japan’s Nissan Motor for light commercial vehicles (LCV).

Renault-Nissan Automotive, an equal joint venture between Nissan Motor and Renault, is setting up a 400,000-unit-per-annum car plant near here.

“We are looking at the possibility of leveraging Nissan-Renault car plant as our unit has been delayed due to land allotment problems,” Ashok Leyland-Nissan managing director R. Seshasayee told reporters.

According to him, the LCV joint venture project is expected to go on stream by 2011.

Meanwhile, Ashok Leyland closed 2008-09 with 29 percent slide in sales and 60 percent fall in profits as compared to the previous year.

The company registered a turnover of Rs.5,981 crore and a net profit of Rs.189 crore last fiscal as against Rs.7,742 crore and Rs.469 crore respectively in 2007-08.

The company sold 54,431 vehicles last fiscal, down from 83,307 units the previous year.

“One disturbing trend in the segmental shift is the steeper fall in in demand for higher capacity vehicles like tractor trailers and multi-axle vehicles,” Seshasayee said.

Ashok Leyland sold 21,447 engines last year as against 11,757 units the previous fiscal.

Seshasayee said the company has decided to scale down its capital expenditure plan for 2009-12 from Rs.3,000 crore to Rs.2,000.

According to him, the new Uttarakhand unit will go on stream with an initial capacity of 50,000 vehicles by the end of this fiscal.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe