There was a time when the Tata Nano was announced, every automaker wanted to develop a small car. However with things not looking so lucrative for cars in the Nano segment, many of them have pulled out from development of a small car. Most companies have a herd mentality and Ashok Leyland is no different. The Hinduja Group owned company was developing a small car with its joint venture partner, Nissan but has now called it quits. The company feels that the small car segment has intense competition and they are better off not competing in this segment. We feel that the lack of demand for ultra low cost cars has led to this decision, but a wise move nonetheless as Ashok Leyland has very little experience in designing a car, let alone a small one.
