In May 2008, Ashok Leyland and Nissan had formed three JVs -- Ashok Leyland Nissan Vehicles Ltd (ALNVL) for vehicles manufacturing; Nissan Ashok Leyland Power Train Ltd (NALPT) for making power trains; and Nissan Ashok Leyland Technologies Ltd (NALT), which is a technology joint venture. The partners have invested about Rs 1,000 crore as equity between them.
"Nissan has agreed to sell to Ashok Leyland all of Nissan's shares in three joint venture companies that were formed in 2008," the two firms said in a joint statement.
The financial details of the transaction have not been disclosed.
The two firms have, however, agreed for a licensing pact for select vehicles.
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"The new phase of business interaction will begin immediately. Ashok Leyland will continue to build, under a licensing agreement, the successful Dost and Partner light commercial vehicles, which are based on Nissan's design, engineering and technology," the statement said.
Commenting on the development, Ashok Leyland Managing Director Vinod Dasari said: "We have decided to acquire Nissan's stake in the three joint venture companies, and this will help focus our efforts to concentrate on our core business initiatives and our customers. We will continue our relationship with Nissan under the new arrangement."
Nissan Corporate Vice-President in charge of Global LCV Business Unit Philippe Guerin-Boutaud reiterated that the company was committed to India and has invested substantially in manufacturing, research and development and sales networks in the country.
Earlier this year, Nissan had served termination notice to Ashok Leyland for one of the three joint ventures they have formed together as flare-up between the partners continued.
The partnership between Ashok Leyland and Nissan came
under strain with models rolled out from their JV did not succeed in the market.
While Nissan discontinued Evalia MPV, Ashok Leyland also shelved Stile MPV which was built on the same platform. Only the Dost LCV sold by Ashok Leyland managed to do well in the market.
Last year, Ashok Leyland had announced that it has made an impairment provision of Rs 214 crore out of total investment of Rs 509 crore in the three JV entities with Nissan.
Such was the breakdown in their relationship that Nissan nominee directors had stopped coming to board meetings called by Ashok Leyland.