Ashok Leyland to Discontinue its Stile MPV; To Focus More on Commercial Segment
The leading commercial manufacturer Ashok Leyland has discontinued its MPV Stile. The company is now focusing more in its core business of manufacturing commercial vehicles. The MPV Stile is the rebadged version of Nissan Evalia which was developed by the joint venture of Hinduja Group owned Ashok Leyland and Japanese Nissan Motor Company.
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Vinod K. Dasari, Managing Director, Ashok Leyland said, "We have stopped production of STILE. It was not doing well as expected. We may re-enter the segment if we see prospects."
Based on Nissan Evalia, Stile was too powered by 1.5-litre K9K diesel engine which also powers Renault Duster and recently launched Lodgy MPV.
The company has decided to invest Rs 224 crore in the joint venture. Mr Dasari said that there are no changes in the equity holding pattern in the joint venture.
Moreover in the effort to enhance its bus business, the company has decided to put up the bus assembly plants in Africa, Middle East. On Prime Minister's ‘Make in India’ initiative, Ashok Leyland will soon start its bus assembly plant in India.
Each of the plant will require an investment of Rs 20 crore and thus the overall capital expenditure for Ashok Leyland this fiscal would be around Rs.100 crore.
The company hops to retain its market share and is positive that the LCV would pick up in the coming months.
Source: ET Auto
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