Chennai, Oct 29 (UNI) Giving a fillip to the Light Commercial Vehicle (LCV) business in the country, automobile major Ashok Leyland, the flagship firm of Hinduja group, today signed a binding Master Cooperation Agreement (MCA) with Nissan Motor Company Limited for forming three joint venture companies.
The agreement was signed by Asok Leyland Managing Ddirector R Seshasayee and Nissar Motor Company President and CEO Carlos Ghosn. This followed signing of the Heads of Agreement (HoA) document in August.
The agreement was signed for development and manufacture of LCV's under both the firms's brands.
The two companies anticipate an investment of 500 million US dollars for the creation of these three joint venture companies, which would cover a vehicle manufacturing company, a powertrain manufacturing company and a technology development company.
Speaking on the occasion, Mr Carlos Ghosn said India has a tremendous amount of skilled manpower in the automobile field that resulted in a boom in the automobile sector.
The two firms are also expected to cooperate to leverage each other's dealer networks in specific global markets, such as providing Nissan with access to Ashok Leyland's dealers in India, and in turn, providing access to Nissan dealer networks in specific export markets.