Ashok Leyland, Nissan forms 3 joint ventures

Chennai: Ashok Leyland and Nissan Motor Company announced the ‘legal formation’ of three joint venture companies for production of light commercial vehicles, powertrain manufacturing and technology development.

The total investment across the three joint ventures will be around $575 million (Rs 2,300 crore), it was announced today. Also, the names of the three joint ventures have been finalised.

In Ashok Leyland Nissan Vehicles Pvt Ltd, which will manufacture LCVs, Ashok Leyland will hold 51 per cent.

In Nissan Ashok Leyland Powertrain Pvt Ltd, which will manufacture engines and gearboxes, Nissan will hold 51 per cent.

In Nissan Ashok Leyland Technologies Pvt Ltd, which will jointly develop, both partners will hold equal stakes.

The vehicle manufacturing company will be initially capable of producing 100,000 LCVs, but capacity will be scaled up later. The plant is expected to start production from 2010-11. (The site for the plant has not been disclosed yet. It is a toss up between Sriperumbudur in Tamil Nadu and Tada in Andhra Pradesh, both locations close to Chennai.

However, it is learnt from sources that the company would choose Sriperumbudur.)
“Among the three platforms identified, covering applications up to 7.5 tonne gross vehicle weight, is an all-new Nissan Atlas F-24 light duty truck,” says the press release.

“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,” it says.

Mr R Seshasayee, Managing Director, Ashok Leyland, told Business Line that Nissan Ashok Leyland Powertrain Pvt Ltd would produce engines and gearboxes required for powering the LCVs. One of the engines would be a new one developed exclusively for powering the LCVs of 1.25-tonne payload capacity. The other engines would come from Nissan’s shelves and be produced here.

Nissan Ashok Leyland Technologies Pvt Ltd would pick up aggregates from both partners and develop new vehicles using them appropriately to the market’s needs, he said.