The Hinduja Group today said the joint venture between flagship company Ashok Leyland and Nissan will roll out a light commercial vehicle in 2011.
"Things (JV with Nissan) are on schedule and everything is moving along. The first light commercial vehicle will be rolled out in 2011," Hinduja Automotive Executive Vice- Chairman V Sumantran told reporters here.
He said the partners are "along the way in designing the vehicle", but declined to share further details.
Ashok Leyland Nissan Vehicles Pvt Ltd, in which the Indian partner has a 51 per cent stake and the remaining equity is held by Nissan, was set up in 2007 to manufacture LCVs as part of three JVs between the two partners.
The other two JVs pertain to manufacturing of powertrains and developing technology. The two firms had earmarked an investment of Rs 2,300 crore for setting up a joint production facility near Chennai.
However, the partners later altered the plan and decided to start rolling out vehicles from their respective plants .
"We will use the facilities at our plant as well as Nissan's plant... Originally, the idea was to have an initial LCV production capacity of 1.80 lakhs units annually, but now we will do it in phases. However, the phasing process is yet to be announced," Sumantran said.
Asked about product development, he said: "All LCVs will be engineered in India, but some will have donor platforms, but (they) will be restructured."
The two partners have agreed to go for separate badging of the products to be manufactured by the JV.
Sumantran said it will not hurt the fortunes of the two joint venture partners.
Earlier this year, Ashok Leyland Managing Director R Seshasayee had said some products in the
Value segment will bear the Ashok Leyland name, while those in the niche segment will have the Nissan badge.
