The demand for medium and heavy commercial vehicles has lessened recently due to the economic downturn. Keeping an eye on the market condition, the Hinduja Group-controlled Ashok Leyland has redrawn its capacity enhancement programmes. This move was announced in the recent annual report published by the company.  In 2008, Ashok Leyland and Nissan Motor Co of Japan entered into an agreement to form three joint venture companies for the light commercial vehicles (LCV) business in India for technology development, vehicle manufacturing and powertrain manufacturing. In view of the unfavourable economic situation, however, the two companies have decided to rework their manufacturing plans, including the option of phased implementation of the project. Fiscal and other incentives have already been secured from the Tamil Nadu government for the project, although allotment of land for the project is awaited. However, both companies have stated that the project might be restarted in case of future market revival. |
