Ashok Leyland-Nissan JV plan model blitz

It was a ‘first’ for both Ashok Leyland and Nissan at the 11th Auto Expo. They both unveiled their respective first Multi Purpose Vehicles (MPV) at the biennial event. Ashok Leyland calls it the Stile and partner Nissan calls it the Evalia. “It is not so much as to what the platform is. It’s more towards the different use of the vehicle in different segments,” says Dr V Sumantran, non-executive vice-chairman, Ashok Leyland. This is another example of badge engineering, which is a new and fast-catching trend in India. Volkswagen has done it with its Vento and the Skoda Rapid, while the Renault-Nissan Alliance did it with the Nissan Micra and Renault Pulse hatchbacks.

“Don’t try and push it into any segment because it is a segment-breaker, so it can be an MPV, it can compete with the Innova. But at the same time, it is also designed to blur the edges between passenger car and LCV. That’s the objective,” says Nissan’s executive vice-president Andy Palmer. Explaining the Ashok Leyland Stile’s positioning, Dr Sumantran says: “The Stile is very much oriented to airport limousines, hotel shuttles, BPO cabs and so on. So we are targeting very different customers, because of which we will have different specifications, different engine tuning and maps, different interior trim, each oriented to what the customer segments are.”

The Evalia and the Stile are based on the Nissan NV200 van. While the Evalia will be sold through Nissan’s passenger vehicle dealership network, the Stile will be available in Ashok Leyland’s newly set up LCV retail network. The Stile and Evalia will start off the new product offensive for the Ashok Leyland-Nissan LCV joint venture. “From now on, we are looking at a product launch every six months. We just rolled out the Dost. Within six months from now Nissan will launch the Evalia, then the Stile six months after that, and then the Ashok Leyland Partner (a six-tonne truck), and somewhere in between we will also launch the CNG-Dost. So literally every four to six months, we’ll have a new launch in the market,” says Dr Sumantran. The frequency is targeted at meeting the earlier stated goal of selling 150,000 units between the partners during the first three years.

The JV’s first product, Dost, has got off to a ‘good start’ – 2,700 units have been sold so far. “They consist of first-time customers, and also owners of other competing brands. The fact that customers have booked the Dost and are waiting for the product is a good sign for us,” says Nitin Seth, executive director, Ashok Leyland. The Dost, available in the four southern states, Gujarat and Maharashtra, has a 12-week waiting period currently. It is likely to take another year to reach other markets within the country. The JV will enter the Delhi market with the CNG Dost.

The Stile, which will join the Dost next year, is what Ashok Leyland calls a ‘Multi-Functional Vehicle (MFV)’. Its monocoque body construction makes for a lower kerb weight contributing to its fuel efficiency while for passengers, it translates to better safety and superior ride quality. The vehicle’s low floor makes for easy entry and exit, while sliding doors on both sides allow for easy access in tight parking spaces.

These features, Ashok Leyland hopes, will help the Stile compete strongly against the current market leader, Toyota's Innova. It will be available in both CNG and diesel versions, with options of two and three rows of seats. The Stile will later be joined by the Partner, a new six-tonne LCV platform launched globally by Nissan. This platform has helped Nissan gain market share in several global markets.

The Partner is powered by a 120 hp ZD30-DDTI common-rail diesel (BS IV-compliant) engine. Ashok Leyland displayed a refrigerated truck version which represents one of the application variants, some of the others being steel and aluminium containers and tippers.

The Stile and Partner platforms are scheduled for launch in mid-2013. The Dost CNG will hit the market during this year.

Nissan's strategy

While Ashok Leyland works on a strategy to strengthen its position in the CV space, partner Nissan is betting on the Evalia to make further inroads into the Indian passenger vehicle market.

The Evalia, when it goes on sale later this year, will be Nissan’s sixth model in India. Nissan’s sales, driven primarily by the Micra hatch and the Sunny midsizer, are expected to cross 40,000 units in this fiscal. Last fiscal, it sold 13,000 cars in India. Like the Micra, the Evalia is also planned for exports. “We have that possibility. But for Dost, which has so many back orders now, we can’t even consider exporting. We haven’t even entered all the states in India. Hopefully, we’ll have the same problem with this vehicle,” says Palmer.

The Evalia will enter a segment that was once a monopoly for current segment leader Innova, which sold 37,713 units during April-December 2011. The segment is getting busier. The Innova got upgraded with a new version launched at the Expo. Mahindra & Mahindra will launch a sub-4-metre Xylo and a facelift of the current Xylo is also expected. Maruti Suzuki launched its first MPV – Ertiga –- and UV and LCV maker Force Motors will enter the segment with its version of the Mercedes-Benz Viano.