India’s Growing Commercial Vehicle Market To Be Tapped By Nissan-Leyland JV

India's Growing Commercial Vehicle Market To Be Tapped By Nissan-Leyland JVIndia’s second largest commercial vehicle maker, Ashok Leyland, said it expects its joint venture with Nissan Motors of Japan to sell 55,000 light commercial vehicles in the first year of sale, following a launch recently.

The demand for LCVs (Light commercial vehicles) in India is on the rise.

From in.finance.yahoo.com:

Light commercial vehicle sales in India have grown 27.4 percent so far this fiscal year, according to data released by an industry body, while demand for cars has taken a beating in the world’s second-fastest growing major auto market.

The 2008 JV, which has invested 12 billion rupees ($246 million) so far in product development, launched its ‘Dost’ model on Wednesday, marking the Nissan-Leyland JV’s foray into the LCV segment.

Its annual sales target for ‘Dost,’ which means ‘friend’ in Hindi, is about 17 percent of the smaller LCV market in India.

“The LCV market is underserved, so we are seeing enough demand for the next couple of years,” V Sumantran, chairman of Nissan-Ashok Leyland Powertrain Ltd, told reporters at the sidelines of the launch event.

“The joint venture will make incremental investments depending on how many products we want and at what intervals,” said Nitin Seth, executive director, LCV at Ashok Leyland.

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