Leyland, Nissan plan 3 JVs for LCVs, engines

Ashok Leyland has signed a heads of agreement with Japan-based Nissan Motor Company for three joint venture companies to develop, manufacture and market light commercial vehicles (LCVs), powertrains and technical development.

The joint venture companies will cover the following business areas:

Vehicle manufacturing company - a company with exclusive rights to manufacture LCV products in India for both the partners. Manufacturing facilities will be located in India, and the company will be majority owned by Ashok Leyland. In the medium term, production volume (for Indian and export markets) is expected to be above 1,00,000 units annually.

Powertrain manufacturing company - responsible for the manufacture and assembly of engines and other drivetrain components to be fitted in the LCV products and for exports. Manufacturing will be located in India, and the company will be majority owned by Nissan Motor Company.

Technology development company - responsible for the development of LCV products and related powertrains. The company will be owned 50:50 by the two partners.

Dheeraj G Hinduja, co-chairman, Ashok Leyland said: "Possibilities are immense, for a win-win collaboration, by bringing together Nissan's tradition of engineering excellence with Ashok Leyland's intimate knowledge of the market and cost efficient value addition in India."