Dost turns a year old, ramp-up plan is on

THE FIRST PRODUCT of the Nissan-Ashok Leyland joint venture, the Dost, has completed its first birthday. The Dost single-handedly turned around Ashok Leyland’s fortunes by clocking sales of 20,479 units in a period of 11 months. To commemorate its first anniversary, the company has launched an anniversary edition priced at a premium of Rs 15,000 over the existing top-end model. The model will cost Rs 4.78 lakh and will be available till the end of Diwali.

Dr V Sumantran, chairman, Nissan-Ashok Leyland Powertrain, says the ramp-up plan is on schedule. From an initial capacity of 200 units per month at its launch in September 2011, the monthly production of the Dost was 2,800 units in August 2012. While the Dost rolls out from Leyland’s facility in Hosur, it will later roll out from a new plant near Sriperumbudur that will come up within two years.

Dr Sumantransays,“We saw an opportunity to tap the gap in the market between the sub-one-tonne and 3.5-tonne segments. Recent SIAM data indicates that growth in the sub-one-tonne category has slowed and the 2-3.5 tonne segment has achieved the maximum growth.” The 2-3.5 tonne segment holds a 41 percent share in the small CV segment and the Dost has a 21 percent share. The company will take the Dost to one new state every quarter and began sales in Rajasthan and Chattisgarh in the last quarter. Nitin Seth, executive director, LCV – marketing, says an all-India launch can take place when the production hits at least 4,000 a month. “By the next fiscal, we will hit 55,000 units per year and that’s the time. Right- away, we plan to launch in Madhya Pradesh, NCR and Uttar Pradesh,” he reveals. The number of sales outlets will also be increased from 45 in eight states to 89 outlets in 11 states.