Nissan, Ashok Leyland in wide-ranging LCV joint ventures

Our Corporate Bureau
30 August 2007

Commercial vehicle maker Ashok Leyland has signed three joint venture agreements with Japan''s Nissan Motor Company for vehicle and power train manufacturing and for technology development.

Ashok Leyland will form three companies, one of them to make LCVs, in which the Indian commercial vehicles maker will hold a majority stake. The medium term sales target is said to be 1,00,000 vehicles in a year.

The second company will manufacture and assemble engines and other drive train components for LCVs made in India and for exports, in which Nissan will have majority control. In the third company, which will focus on technology development, both partners will have 50:50 ownership. The products developed will be sold under both the Ashok Leyland and Nissan brands.

Carlos Ghosn, Nissan''s president and CEO, says that the latest deal with Ashok Leyland "will broaden our coverage of the Indian market besides providing new LCV products for emerging markets," said in the statement. Significant exports are planned.

"Our LCV business and overall expansion into India represents two of the biggest growth opportunities for Nissan in the medium and long term," Ghosn adds. "Following previous announcements relating to expanding our passenger car business in India, this latest investment will broaden our coverage of this market in addition to providing new LCV products for emerging markets. In this regard, we very much look forward to the partnership with Ashok Leyland."

According to Ashok Leyland managing director R Seshasayee, his company "has been consolidating its growth in medium and heavy commercial vehicles even while exploring suitable opportunities to expand the total product portfolio. This partnership with Nissan will allow Ashok Leyland to expand into the fast growing LCV segments in India. We look forward to harvest the full potential of the two organizations."