Nissan doesn't want to ride Bajaj's LCV foray

NEW DELHI: As it formalised threejoint ventures with Ashok Leyland for commercial vehicles on Monday, Japan'sNissan Motor categorically ruled out joining Bajaj Auto's proposed foray intothe four-wheel light commercial vehicle (LCV) project."No, not atall," was the answer of Andy Palmer, corporate V-P of Nissan's LCV businessunit, when asked whether the company, that is partnering Bajaj and French parentRenault for a $2500 budget car, would extend it to commercial vehicles aswell.Speaking to TOI from Japan, Palmer said the tie-up with AshokLeyland was an exclusive deal. "Ashok Leyland is clearly our exclusive partnerfor LCVs and there is no question of partnering Bajaj," he said, putting at restspeculations on whether it would join Bajaj's LCV foray and how it would affectits agreements with Ashok Leyland.Nissan and Ashok Leyland on Mondayannounced formation of three JV companies for LCV business that would see totalinvestments of about Rs 2300 crore. While Ashok Leyland will hold51% in the vehicle manufacturing JV, Nissan will hold 51% in the powertarinmanufacturing JV. The third JV, the technology development company, will beowned 50:50 by the two partners.A new greenfield facility would come upfor project, possibly in Tamil Nadu, which will have an initial capacity of 1lakh vehicles and start production from 2010/11. A new engine is being developedspecifically for LCV applications, as part of the range of Euro III and Euro IVcompliant diesel engines. Palmer said though there would be a commonmanufacturing facility, the two companies would not have joint-badged vehicles."There would not be common badged vehicles. The products will beeither true blood Nissan vehicles or true blood Ashok Leyland ones," he said,adding that the effort would be to target different customer types andsub-segments.Even the distribution network would be different. "Asthe products would be different, Nissan would appoint its own dealers whileAshok Leyland will use its own network," Palmer said. R Seshasayee,MD of Ashok Leyland, said his company would roll out "value" products throughthe JV. "We intend to target the high volume segment while Nissan's productswould be of premium type," he said, adding that both passenger and goodscarriers would be manufactured.On the lower side, the companieswould manufacture products with payload of 1.25-tonne, 2-tonne and 3-tonne,Seshasayee said, clearly hinting that it would roll out rival products to Tata'ssuccessful sub one-tonner Ace.