Elongated particles in dense systems often exhibit alignment due to volume exclusion interactions, leading to packing configurations. Traditional models of collective dynamics typically impose this alignment phenomenologically, neglecting the influence of volume exclusion on particle positions. In this paper, we derive nematic alignment from an anisotropic repulsive potential, focusing on a Gaussian-type potential and first-order dynamics for the particles. By analyzing larger particle systems and performing a hydrodynamic limit, we study the effects of anisotropy on both particle density and direction. We find that while particle density evolves independently of direction, anisotropy slows down nonlinear diffusion. The direction dynamics are affected by the particles' position and involve complex transport and diffusion processes, with different behaviors for oblate and prolate particles. The key to obtaining these results lies in recent advancements in Generalized Collision Invariants offered by Degond, Frouvelle and Liu (KRM 2022).