CHENNAI (May 26, 2008) - Hinduja Group flagship Ashok Leyland and Nissan Motor Co., Ltd., today announced the legal formation of the three JV companies for the Light Commercial Vehicle (LCV) business in India for vehicle manufacturing, powertrain manufacturing and technology development. This follows the signing of the Master Co-Operation Agreement between the two companies in October 2007.
The shareholding structures of the three joint ventures are as under:
- Ashok Leyland Nissan Vehicles Pvt. Ltd.,the vehicle manufacturing company will be owned 51% by Ashok Leyland and 49% by Nissan;
- Nissan Ashok Leyland Powertrain Pvt. Ltd., the powertrain manufacturing company will be owned 51% by Nissan and 49% by Ashok Leyland;
- Nissan Ashok Leyland Technologies Pvt. Ltd., the technology development company will be owned 50:50 by the two partners.
The aggregate investment in all three companies will be around Rs. 23 billion (approx. 575 Million USD). The enterprise will involve a capacity of 100,000 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.
