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Ashok Leyland, Nissan in a JV to manufacture LCV

Ashok Leyland and Nissan, who have tied up for producing light commercial vehicles, are intending to launch their first product by mid-2011.

Both the partners have said they will manufacture 150,000 vehicles during their phase I plans from their current facilities and said, the greenfield facility is ‘very much’ on the agenda.

Andy Palmer, senior VP, Nissan Motor Company and chairman, Ashok Leyland Nissan Vehicles said both the partners will use their current facilities to produce and networks to sell vehicles and ‘their will not be any cross distribution or products and it will be different brands.’

He added, while Nissan will handle primarily luxury markets, Ashok Leyland would deal with the volume market. The partners will sell the products under their own brands both in the local and global market.

He said further, “In select international markets, Ashok Leyand will use Nissan’s dealers”.

First product will be launched from the Ashok Leyland’s factory at Hosur, while the second product will come from Nissan’s palnt, which is being established jointly with French partner Renault at Oragdam, Tamil Nadu and third product will again come from Ashok Leland’s plant, said V Sumantran, executive VP, Hinduja Automotive Ltd and Chairman, Nissan Ashok Leyland Powertrain Ltd.

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