Ashok Leyland scraps small car plan

Ashok Leyland has finally made its decision and shelved the compact car venture. This firm with its partner, Nissan had previously decided to bring out a new small car in the Indian Auto Market, but now Ashok Leyland has decided to drop the plan on the whole. It is a very well-known fact that there is a huge competition in the compact car segment of the Indian Auto Market, therefore this could be one reason behind Ashok Leyland shelving the compact car project.

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Furthermore, Ashok Leyland has just stepped its foot into the light commercial vehicle market with its “Dost” LCV and it is also best for Ashok Leyland to strengthen its brand value in the segment, which is its core rather than experimenting in the new segment. Ashok Leyland is also looking forward to explore business opportunities from aviation industry. The Defiance technologies owned by Hinduja, is currently looking for partnership or attainment in this segment of the market. It is expected that an official announcement regarding the same will be done in a couple months or so.

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Currently, small cars in India are selling like hot cakes. But, on the same pace, it surely has some tough fight going on between various companies. Therefore, Ashok Leyland dropping the small car project will prove to be beneficial for their firm.