Ashok Leyland and Nissan Motor Co. Ltd., have announced the legal formation of the three JV companies for the light commercial vehicle (LCV) business in India for vehicle and powertrain manufacturing and technology development. This follows the signing of an agreement between the two companies in October 2007.
Ashok Leyland Nissan Vehicles Pvt. Ltd., the vehicle manufacturing company, will be owned 51 per cent by Ashok Leyland and 49 per cent by Nissan, while Nissan Ashok Leyland Powertrain Pvt. Ltd., will be owned 51 per cent by Nissan and 49 per cent by Ashok Leyland. Nissan Ashok Leyland Technologies Pvt. Ltd., for technology development, will be owned 50:50 by the two partners.
The aggregate investment in all the three companies will be around Rs. 23 billion (about $575 million). The enterprise will involve a capacity of one lakh vehicles in the first phase, to be scaled up subsequently. The plant is expected to start production from 2010/11.
Among the three platforms identified, covering applications up to 7.5 ton gross vehicle weight, is an all-new generation Nissan Atlas F24 light-duty truck. In addition, an all-new engine is being developed specifically for LCV applications, as part of the range of Euro 3 and Euro 4 compliant diesel engines.
Mr. R. Seshasayee, Managing Director, Ashok Leyland, commented: “The current growth plans of Ashok Leyland involve not only our stated capacity additions and new product launches but also, with this important step, our entry into the fast-growing LCV segment. The balanced JV structure facilitates meaningful contribution from both partners and the best opportunity to leverage their respective strengths.”
Mr. Carlos Tavares, Executive Vice President, Nissan, said: “We made another important step in the creation of a solid structure that will allow Nissan and Ashok Leyland to enter successfully the light commercial vehicle market in India and global markets. This represents an important embedded element in our new Nissan GT 2012 plan based on growth and trust.”
Nissan is present in all major auto markets worldwide selling a comprehensive range of cars, pickup trucks, SUVs and light commercial vehicles under the Nissan and Infiniti brands. Nissan employs over 224,000 people worldwide.
The Nissan GT 2012 five-year business plan is focused on the company’s long-term performance combined with its responsibilities to stakeholders as a significant global business. The three commitments are quality leadership, zero-emission vehicle leadership, and five per cent revenue growth on average over the five years (2008-2012).
