New Delhi, May 26: Commercial vehicle major Ashok Leyland and Nissan Motor have formed three joint venture companies for the light commercial vehicle (LCV) business in the country for vehicle manufacturing, powertrain manufacturing and technology development, with an investment of Rs 2,300 crore.
This follows the signing of the master co-operation agreement between the two companies in October 2007. In the vehicle manufacturing company, Ashok Leyland Nissan Vehicles Pvt Ltd, 51 per cent stake will be owned by Ashok Leyland and the rest by Nissan.
Nissan Ashok Leyland Powertrain Pvt Ltd, the powertrain manufacturing company, will be owned 51 per cent by Nissan and the remaining by Ashok Leyland. The two firms will have equal share in the technology development company Nissan Ashok Leyland Technologies Pvt Ltd, the company said in a statement.
The enterprise will involve a capacity of 1,00,000 vehicles in the first phase, to be scaled up subsequently. The plant is expected to start production from FY 2010-11. Among the three platforms identified, covering applications up to 7.5 tonne gross vehicle weight, is an all-new generation Nissan Atlas F24 light-duty truck, the statement said.
Besides, an all-new engine is being developed specifically for LCV applications, as part of the range of Euro three and Euro four compliant diesel engines, it added. As a part of its global strategy, by 2012, Nissan has planned to roll out 13 LCV models. Other than the new launches, the company is also planning to double its revenue generated by LCV sales by 2012 as compared to 2007, as they plan to become a leading player. By taking leverage from local expertise Nissan aims to sell over two lakh vehicles in the next four years.