Ashok Leyland and Nissan celebrate Job One of DOST

Ashok Leyland and Nissan celebrate Job One of DOST

· First product rolls out from new lines in the Hosur facility · Commercial launch scheduled this quarter

Hinduja Group flagship, Ashok Leyland and Nissan Motor Company today rolled out their first product, the Ashok Leyland DOST, from Ashok Leyland’s Hosur facility. The first production vehicle was symbolically driven out from the dedicated newly commissioned Light Commercial Vehicle line by Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd. and Dr. Andy Palmer, Executive Vice President, Nissan Motor Company Ltd & Chairman, Ashok Leyland Nissan Vehicles Ltd. The commercial launch of Ashok Leyland DOST is scheduled later this quarter through a new exclusive dealer network.

The DOST:

DOST is a brand new offering, which in comparison to the products presently available in the SCV (Small Commercial Vehicle) segment, offers its users a new experience and contemporary technology. Designed for a higher payload of 1.25 Tonnes, it is equipped with a state-of-the-art 55 hp, 3 cylinder 1.5 litre CRDI engine. This brand-new engine is tuned for fuel economy as well as the driveability and gradeability required for Indian roads, thanks to the Common Rail technology and a substantial torque of 150Nm. Completing the powertrain package is a five-speed manual gear box. DOST’s practicality is further increased by its tight turning circle radius of just 4.8 m, designed to easily negotiate both congested city roads and narrow rural lanes.

The Euro-look cab is roomy, comfortable with superior ergonomics and incorporates an in-built safety structure. The unique Front Transverse leaf suspension blends superior ride quality with high durability. The Load Sensing Proportioning Valve (LSPV) technology measures the weight on the load body and applies the brake force accordingly to ensure stable braking irrespective of whether the vehicle is fully loaded or empty.

DOST will be available in three versions with the top-end version featuring air-conditioning, power steering, dual-colour beige-gray trim and fabric seats. The customer will also have a palette of three colours to choose from: white, beige and blue.

Further details, including the price range will be unveiled closer to the commercial launch date. Also, visit www.leylanddost.com for more information.

Executive Comments:

Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd.:

“This is a very important milestone in the journey of the Ashok Leyland – Nissan Joint Venture. DOST is the first physical manifestation of our association and a matter of great pride for us as this marks the fruition of a project that started effectively in 2008. The Indian SCV customer is fast evolving and becoming increasingly demanding, apart from fuel efficiency and durability, about other attributes like driveability, power, comfort, safety, loading capacity and even styling and we are confident that DOST has been well engineered to offer him a new level of experience hitherto unavailable in India. We have endeavoured to listen carefully to Indian SCV customers and offer them, with the DOST, our best product.”

Dr. Andy Palmer, Executive Vice President, Nissan Motors Company and Chairman, Ashok Leyland Nissan Vehicles Ltd.:

“Ashok Leyland and Nissan have remained faithful to the vision of joining forces to create value for the Indian business customer. Our aim was to combine our expertise and experience to create high quality, global standard products with affordable technologies, and with relevance to today’s Indian market. Our vision is now becoming a reality with the first DOST coming off the production line. We are confident that DOST, and future products from our partnership with Ashok Leyland, will contribute to the success of many businesses in India.

About the Hinduja Group

Hinduja Group is an investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors. The Group, founded by Shri P.D. Hinduja in 1914 has activities across three core areas: Investment Banking, International Trading and Global Investments. It also supports charitable and philanthropic activities across the world through the Hinduja Foundation. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure Project Development, Chemicals & Agri business, Energy, Real Estate, Trading and Healthcare. www.hindujagroup.com.

About Ashok Leyland

Ashok Leyland is the flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in India with 2010-11 turnover of US $ 2,5 billion. With seven manufacturing locations at Chennai, Hosur (three plants), Alwar, Bhandara and Pantnagar (Uttarakhand), the Company has a production capacity of 150,000 vehicles. Ashok Leyland has associate companies in the Czech Republic and the UAE and a joint venture in Sri Lanka, besides exports to over 30 countries worldwide. www.ashokleyland.com

About Nissan Motor Company Ltd.

Nissan Motor Co., Ltd., Japan's second-largest automotive company, is headquartered in Yokohama, Japan, and is part of the Renault-Nissan Alliance. Operating with more than 248,000 employees globally, Nissan provided customers with more than 4.1 million vehicles in 2010, generating revenue of 8.77 trillion yen ($102.37 billion US). With a strong commitment to developing exciting and innovative products for all, Nissan delivers a comprehensive range of 64 models under the Nissan and Infiniti brands. A pioneer in zero-emission mobility, Nissan made history with the introduction of the Nissan LEAF, the first affordable, mass-market, pure-electric vehicle and winner of numerous international accolades, including the prestigious 2011 European Car of the Year award and 2011 World Car of the Year.

For more information on our products, services and commitment to sustainable mobility, visit our website at http://www.nissan-global.com/EN/.


For further information please contact:

Vinod Chacko, Corporate Communications, Ashok Leyland, Mobile: +91 9841416233
Mayur Shah, Adfactors, Mobile: +91 98201-49769
Toral Singhavi. Clea PR, Mobile: +91 90049 62222

Ashok Leyland to focus on growth of non-truck products

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Chennai, We also make trucks could well be Ashok Leylands catch phrase in the coming years as it targets more revenues from its non-truck business.

Ashok Leyland hopes that the non-truck products or the non-cyclical business will contribute to more than half its income in the next few years. The company sees it as an option to insulate itself from the cyclical changes in the economy, which have hit commercial vehicle sales now.

Primarily this will mean the growth of its engine business. The company now supplies engines that are used as prime movers in generators and marine applications. It sees a growing opportunity in supplying to the telecom tower segment and hence will offer complete generator solutions rather than just supplying the engines. Other areas for growth would be spare parts sales, supply to the defence sector and widening export markets.

revenues, sales

Mr K. Sridharan, Chief Financial Officer, Ashok Leyland, told reporters on Friday that the non-cyclical revenue stream is estimated to increase to about 45 per cent of its revenue in the current year, up from 38 per cent last year, on a turnover of about Rs 8,000 crore. In the coming year, this segment will contribute more than half of Ashok Leylands revenue.

The company, which till now has supplied engines to generator manufacturers, will now assemble its own brand of LeyPower Gensets. Investments would be minimal because it will outsource components such as alternators and housing.

The ongoing power shortage and the growth of the telecom infrastructure are factors that will contribute to the business. Mobile service providers need to provide generator sets in the signal towers to keep the network live during power cuts, he said. The company makes its own engines and also imports some from China for the telecom tower business.

Spare parts sales are also expected to grow steadily with the increasing retrofit of CNG and aggregate parts. Spare parts revenue, which is around 5 per cent of its revenue, is set to grow to 7 per cent in the near future, he said.

Growing defence orders

Supply to the defence sector is also growing with steady orders from the vehicle factory at Jabalpur.

Export market is also steady with the company targeting markets in Africa, Latin America and the Indian Ocean countries.

In West Asia, Ashok Leyland has compensated for the drop in Dubai by focussing on Qatar, Iraq, Egypt and Iran.

Source : Business Line (Online Edition) (2/15/2009)