Ashok Leyland suspends Stile MPV, writes down Rs 224 crore Nissan JV investment
Ashok Leyland Stile MPV, a re-badged Nissan Evalia was announced in July 2013 by Carlos Ghosn, CEO of Renault-Nissan alliance and G.P. Hinduja Chairman of Hinduja Group wherein a joint venture between the two companies was also announced. Official launch took place in October 2013.
Ashok Leyland Stile was priced from INR 7.49 lakhs and was directed at fleet and shuttle operators in the country for commercial use. Sporting a 1.5 liter K9K diesel engine, Stile also sported onboard comforts that included sliding rear windows, dual blower air conditioning and captain seats.
However, sales of the Stile were anything but promising, causing the company to suspend its production a few months ago. Ashok Leyland has even written down investments made in the joint venture with Nissan. Total investments were made to the tune of INR 500 crores in the joint venture with Nissan Motors, while Ashok Leyland has written it down by INR 214 crores.
Poor sales of the Ashok Leyland Stile was primarily due to extensive competition in its segment from the likes of Maruti Ertiga, Honda Mobilio and Toyota Innova. Failing to see desired results, the company pulled out Stile from production a few months ago and exits the MPV business while confirming re-entry in this segment only once they have the right product. Stile was a part of a 4 car deal with Nissan which included the Dost, Partner and another vehicle.
Ashok Leyland CV business is going strong. The company reported an increase in sales by 28 percent for financial year ended 31st March 2015. They registered experienced 16 percent growth during the year and gained a market share of 28.5 percent in both the heavy and medium CV segment in the country.