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TVS Srichakra plans capacity expansion Hindalco – re-rating Yamaha unveils scooter boutique The unexpected exit RoC in the dock... Record two-wheeler sales Hyundai to focus on SUVs and AMT variants Dish TV – subscriber additions encouraging The gainers and the losers L & T set bigger ambitions in defence business L&T profit up by 11 per cent New India Assurance posts impressive show From the toughest to the best year CAPITAL NOTES 29 per cent jump in TCS revenues Bajaj Finserv – Q1: fare well Vellayan is back, after 150 days AL introduces Guru & Partner Shriram Life clocks more than Rs.1000 crore premium in 2015-16 Ode to Ratan Tata L & T’s floating dock for navy AL wins Deming prize again It takes two to tango Tata Motors bets on new launches Daimler grows sales and share in India Land wars Gamesa to set up a plant in Nellore Emami – a new growth mantra Welcome focus to improve rural India... TVS Automobile invests Rs.75 crore in start-up firms IOB on turnaround path Titan Company – sales recovery to kick in ITC chairman calls for policy impetus to transform agriculture Sundram Fasteners rejigs international LVB posts 31 per cent growth in Q1 net profit Last stages Are they really independent? V-Guard launches app-enabled water heater system PPP model for infrastructure development TN government keen on revival of operations at Nokia complex Ponni Sugars (Erode) Ltd: not so sweet 2012-13 Carnival Films acquiring 3000 screens pan India Back in growth mode Kone India eyes further growth in elevator market Rane targets Rs.5500 crore topline by 2018-19 E.I.D Parry (India) Ltd: another sweet year M & M unveils driverless technology for tractors Tata Motors charts investments in PV and CV businesses A welcome initiative-even critics are recognised Smartphone onslaught by Chinese brands A niche in FMCG business... Housing demand revival Tata Motors joins compact SUV bandwagon with Nexon HPCL plans Rs.61,000 crore capex over 5-years TI Cycles plans retail expansion to drive sales for premium bicycles Tata gets 4-star rating for Zest Increasing market share Solar installations exceed 2015 capacity in five months Right to privacy – now it’s fundamental! L&T bags the Mumbai Trans-harbour link order Sivasankaran enters taxi space to take on Uber and Ola Is this a generation gap? Chinese smart phones flourish in small towns too! PSU non-life firms seek to protect share Aurobindo Pharmacy: good turnaround Eyes strong growth in 2016-17 AL secures orders for 3600 buses Michelin to double Chennai capacity Toyota and Suzuki to introduce EVs in India by 2020 Smooth sailing of SAIL Wabco launches safety system ITC – steep excise hike Mercedes-Benz sales continue to zoom He excels in the nuts and bolts of entrepreneurship When small is not so beautiful… Singur minus Nano – victory or folly? Nissan exit shouldn’t affect ALL Maruti – for young buyers Consolidating leadership position in smartphones Tata Motors aims to be among the Top 3 global CV & PV firm Preparing for the next growth curve Tata Steel, ThyssenKrupp sign MoU to merge European units Forging industry worried over lower supply of steel and its price Hyundai India achieves 7 mn production at Chennai factory Daimler’s truck exports from Chennai cross 5000 units
 
Nissan exit shouldn’t affect ALL

Ashok Leyland  Ltd (ALL) has opted to terminate its partnership agreement with the Japanese Nissan Motor Company. A part of the Hinduja Group, ALL has opted to buy all the shares of Nissan in the three joint venture companies that were set up in 2008- Ashok Leyland Nissan Vehicles Pvt Ltd, for the manufacture of vehicles, Nissan Ashok Leyland Powertrain Pvt Ltd for the manufacture of power trains and Nissan Ashok Leyland Technologies Pvt Ltd for technology.

Ashok Leyland was set up in a 1955 collaboration with British Leyland, with the latter having the majority stake. Over the initial two decades, ALL focused on medium and heavy commercial vehicles with progressive indigenisation. The Hindujas acquired the British interest and took charge in 1987. At the time of acquisition, they also inducted Iveco, Italy, as a partner with a 10 per cent stake. This was a major attempt to induct state-of-the-art techno-logy. The Hindujas announced that they would endeavour to produce commercial vehicles capable of being exported to G8 countries. Till then ALL’s focus was on indigenous technology appropriate for India and other developing countries.

The collaboration with Iveco did not last long. Unlike competitor Tata Motors, in-house R&D was also weak until the end of the 1990s. But, in the new millennium, a strong focus was made on R&D. A handsome step up of R&D spend was made and scientists and engineers in hundreds were assembled. Then MD, R Seshasayee, Dr V Sumantran (ex-General Motors and R&D leader who was also instrumental in Tata Motors, engineering its passenger cars) and Vinod Dasari, embarked on catching up with technology. Apart from the three joint ventures with Nissan, ALL made extensive forays into technology, acquisitions/partnerships in Europe. These included KMW, German manufacturer of defence equipment, Avia Ashok Leyland Motors (AALM), Prague, Alteams Group, Finland, Optare Plc, Continental AG, Albonair GmbH, Defiance Technologies...

With the boom in the economy from 2004 the Hindujas expanded these collaborations which included a joint venture with the American construction equipment giant, John Deere.

But the slowdown of the economy post 2008-09 severely impacted the company’s growth plans. The John Deere collaboration was terminated and the more recent one relates to the Ashok Leyland-Nissan JVs. In recent months the commercial vehicle sector has been recording handsome growth. With the recent plans of the Central government to phase out old vehicles aged 10 years and more, the market looks promising. However, with the entry of other large players like Daimler, competition is bound to intensify.

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