Ashok Leyland has signed an agreement with Japanese Nissan Motor Company for three joint venture companies to develop, manufacture and market light commercial vehicles (LCVs), powertrains and technical development. The joint venture companies will cover the following business areas:
Vehicle manufacturing company – a company with exclusive rights to manufacture LCV products in India for both the partners. Manufacturing facilities will be located in India, and the company will be majority owned by Ashok Leyland. In the medium term, production volume (for Indian and export markets) is expected to be above 1,00,000 units annually.
Powertrain manufacturing company – responsible for the manufacture and assembly of engines and other drivetrain components to be fitted in the LCV products and for exports. Manufacturing will be located in India, and the company will be majority owned by Nissan Motor Company.
Technology development company – responsible for the development of LCV products and related powertrains. The company will be owned 50:50 by the two partners. Chennai-based Ashok Leyland, with a 30 percent share of the Indian market, the world’s fifth-biggest for buses and trucks, trails Tata Motors Ltd. Sucess of Tata’s Ace luring local and international manufacturers to roll out similar vehicles also sales of commercial vehicles in India have risen by more than a fifth on average annually in the last three years.
official words on the deal
The latest deal with Ashok Leyland “will broaden our coverage of (Indian) market in addition to providing new LCV products for emerging markets,” Carlos Ghosn, Nissan’s President and CEO, said
“This partnership with Nissan, renowned for their product engineering and a wide range of LCV products, will allow Ashok Leyland to expand into the fast growing LCV segments in India,” R. Seshasayee, managing director at the Indian company, said