Nissan may partner with Ashok Leyland for global small car

Nissan may partner with Ashok Leyland for global small carJapanese automaker Nissan is in talks with Hinduja Group's flagship company Ashok Leyland for developing a small car for the global market expected to be priced in the $4500-5000 range.

Notably, Nissan is also a partner in the development of an ultra low cost car with Bajaj Auto and Renault. However, the company believes that the project is yet to reach a suitable solution to produce such a cheap car.

Clearly, the car is being targeted at markets like China and India and to produce such a product at such a low cost, the company needs a local partner which is already engaged in the low-cost processes. The company expects the small car segment to account for almost 20% of the total global car sales in due course of time. In India, the car is expected to be positioned between Tata Nano at the lower end and Maruti Suzuki Swift at the upper end.

Currently, Nissan and Ashok Leyland are working as partners in a LCV joint venture. The two companies announced three JV companies in 2007 for making LCVs, power trains and developing technology, and setting up a plant near Chennai, picturing a total investment of a mind-boggling Rs 2,300 crore.