Ashok Leyland Stile axed as company plans to stick to CVs

Ashok Leyland entered the MPV segment in India in October 2013 when it launched the Stile - a rebadged Nissan Evalia. The vehicle has not been very successful and has not met the expectations of the company. As a result, Ashok Leyland has decided to take the Stile off the production line. With this move, the company has exited the MPV segment.

Ashok Leyland has a joint venture with Japanese carmaker Nissan. The company has decided to write down investment in the joint venture by around Rs.224 crore. There will be no change in the equity holding pattern of the joint venture.

Under the joint venture, vehicles such as the Stile and Dost LCV were produced. The latter will continue to be manufactured.

The Chennai-based company, which is best known for its trucks and buses, has decided to stick to its core business - commercial vehicles. It will set up more bus assembly plants in Africa, the Middle East and India. The manufacturer is aspiring to be a global bus maker with this step. The overseas plant will build buses from kits shipped from India.

Source: ET Auto