Nissan, Ashok Leyland to build plant in Tamil Nadu

Japan’s Nissan Motor Company and Hinduja Group’s flagship Ashok Leyland, signed an initial pact with the government of the southern Indian state of Tamil Nadu to build an integrated plant for light commercial vehicles (LCV) and their engines, as well as a technology development center. The Ashok Leyland and Nissan joint venture (JV) will acquire 380 acres to build the facilities near the port city of Chennai, the two carmakers said in a joint statement. Production at the factories is scheduled to start by the fiscal year ending March 31, 2011, the statement said. With an investment of about Rs23 billion (US$494.56 million), the JV will make light and heavy commercial vehicles, powertrain and also work on technology development. The JV will produce the new generation Nissan Atlas F24 light commercial duty truck in 2010 and a range of products in the 2.5 to eight-ton gross vehicle weight category. Exports are expected to comprise 20% of the first phase capacity of 100,000 vehicles a year, it said. The first JV company for producing light commercial vehicles will be 51% owned by Ashok Leyland, with Nissan owning the remaining stake. (September 8/9/10, 2008)