Ad Here  
August
September
October
November
December
January
 
 
Metro Rail in Chennai, High Expectations NEWS SUMMARIES Time to Indianise reforms Silver Years of Madras Musings Jio Beta Jio Tragedy in the making India bites the BULLET Winds of change DHO saal baad Jaya Walks Into the Sunset OPS Rises An eventful week with VVIPs of Delhi Know the Pulse Why no MEGA Central investments in Dravidian Party rule? More than just number crunchers... Trail-blazing Tamil Nadu Nuggets on MGR at Brooklyn Hospital Recalling the birth of Mobile PR Person Par Excellence TATA STEEL MARCH Nissan exit shouldn’t affect ALL PSUs - Stem the rot before mergers The 3 Loves of RT MEGA MERGERS...... In Law WE TRUST; Everything else WE AUDIT When the setting itself becomes the protagonist Tamil Nadu : 50 Years of Dravidian Rule When the judiciary is hyper active… Women can up GDP by 26 per cent! Power Problems Powerful Problems The king goes fishing while the kingdom is besieged The opportunity to grow is here. Seize it. JOBLESS GROWTH AND BORDER CHALLENGES.... Research for results - A unique industry-institute collaboration Plummeting profits of PSBs Nutri grains vs staples -The dogma within! New steel policy: Minimum government, maximum intervention? Union Budget 2017- It says, let’s continue life the way we live TOP 15 NEWS THIS WEEK Algebra to algorithms and analytics - a maths marvel at Siruseri Multi-party contests, more freebies... Bonanza in locked lands FAREWELL-RBI AUTONOMY Salem steel plant faces brittle future The myth and malaise of MRP MYSORE - INDIA'S CLEANEST CITY Platinum years of engineering innovation, building skills... Delay in Neo delivery hurts IndiGo Dangal – Breaking all barriers Negative photo finish: Mauled by competition, HPF on the block New Chennai Terminal: Next regional hub The war against BLACK Welcome focus on Disinvestment Creating an innovative society The real hero in India’s battle against black money Welcome Measures. Work for 10X Change Technology revolution that’ll be disruptive... Cho Ramaswamy – Multifaceted Two welcome indications on chief minister’s recovery Matchless at 70
 
Nissan exit shouldn’t affect ALL

 

The southern engineering giant 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. The three JVs were: 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 partnership. The companies were equal partners.

 

 Ashok Leyland was set up in 1955 in collaboration with British Leyland with the latter having 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 invited Iveco, Italy, as a partner with 10 per cent stake. This was a major attempt to induct state-of-the-art technology. The Hindujas, at that time, announced that they will endeavour to produce commercial vehicles capable of being exported to developed countries. Till then their focus was on indigenous technology appropriate for India and other developing countries.

 

 The collaboration with Iveco did not last long and was terminated. 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...

 

 The in-house R&D strengths built, combined with the exposure to technology developments in Europe and the US, should help ALL strive for engineering excellence on its own.

 

 The boom enjoyed by the economy from 2004 and the handsome growth recorded by the vehicle and construction sectors, 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 impacted severely on the growth plans. The John Deere collaboration had been terminated earlier 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.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com