Top car seller in Indian market gets a bad remark. Nissan has decided to temporarily stop production of its multipurpose Evalia vehicle, due to excess stock. In May, Ashok Leyland, the partner of Nissan in their light commercial vehicle (LCV) venture, had stopped production of its commercial passenger vehicle, the STILE.
Ashok Leyland decided to write down an investment of Rs 224 crore in joint the venture, which reported a loss of Rs 791 crore in 2014-15.
The venture was announced in 2007, to develop and manufacture LCVs under both the Ashok Leyland and Nissan brands, in the 2.5-7.5 tonne segment.
Although Evalia was given many facelifts since its launch in 2012, it failed to strike the right cord with the Indian motorists. To avoid further losses, Nissan has now stopped all Evalia production. The MPV was Nissan’s bid to take on Maruti Ertiga and Honda Mobilio.
In the past six months, Nissan sold around 200 Evalias; it has cumulatively sold 2,455 since launch in September 2012. The model was mainly competing with Toyota’s Innova and the Mahindra Xylo.
“The Evalia’s design and styling is unconventional and, unfortunately, it has not met our sales expectations with Indian customers. We continue to promote the vehicle with our target customers,” said a Nissan spokesperson.
The joint venture company is called Ashok Leyland Nissan Vehicles, in which Leyland holds 51 per cent. The venture had developed the STILE, as also the Evalia. “We have stopped production (of STILE), since the product was not successful. We will stick to only commercial vehicles,” Vinod K Dasari, managing director of Ashok Leyland, had said during the annual press conference.
However, the production of Nissan Evalia has only been stopped for the time being, till the dealerships are able to sell the remaining available cars and create space in the market for the new model.