MUMBAI (Commodity Online): Chennai-based leading commercial vehicle maker, Ashok Leyland Ltd (BOM: 500477) may join hands with multi-national car maker, Renault-Nissan to manufacture small cars for Indian market.

Ashok Leyland stocks gained on the Indian bourses in the morning trading session on Wednesday, 17 March, 2010. Stock prices gained by close to 1.5% to Rs.53.90. The stock has been on a rally over past three days by posting healthy gains of about 6%.

Meanwhile, the BSE Sensex was up 114.06 points, or 0.54%, to 17,494.24. The stock hit a high of Rs.54.45 and a low of Rs.53.60 so far during the day.

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Carlos Ghosn, chief executive officer of Nissan and Renault alliance had mentioned that that there is a sizeable market for cars in the sub-B segment in all the developing countries. The alliance is in talks with Ashok Leyland for exploring possibility of making cars in that segment.

Renault has a joint venture also with Mahindra and Mahindra (M&M) for making Logan car while the Japan's Nissan Motor Company has tied up with Ashok Leyland for making light commercial vehicles.

In addition, Renault-Nissan has tied up with Bajaj Auto to design and manufacture an ultra low-cost car. Reports suggest that the new model with Ashok Leyland will be larger than a low-cost car that Nissan is working on with Bajaj Auto. Ghosn said none of the group's Indian alliances were overlapping.

Ashok Leyland's net profit surged 453.9% to Rs.104.63 crore on a 80.7% rise in sales to Rs.1815.53 crore in Q3 December 2009 over Q3 December 2008.

Ashok Leyland manufactures commercial vehicles and spare parts. The company also manufactures special vehicles and engines for industrial, genset, marine requirements and automobile spare parts.

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