ID fanThe Ashok Leyland and Nissan formed a joint venture and they are going to invest around Rs.2500 Cr to establish a manufacturing plant near Chennai to manufacture light commercial vehicles. They are estimating to produce 150,000 vehicles from the exiting facilities till the new factory completes.

This is the coming together of two famous brands in automobile manufacturing. Ashok Leyland has a strong presence in the Indian commerical LCV market and Nissan is globally a well-reputed company.

Industrial centrifugal fansAccording to the representatives of the Leyland, from the company’s Hosur manufacturing facility they are going to produce a light van, a light truck and a heavy truck, in two phases. The company also plans to produce 100,000 units per year from its Hosur factory and gradually take this to 190,000 units once the Sriperumbudur unit gets commissioned. This manufacturing unit will help the transporters to get better quality vehicles for their transportation requirements. The company also plans to export its products to other Asian markets.

PA FanBoth the companies have said that they will use their existing industrial facilities to manufacture and networks to sell vehicles and they also stated that there will not be any cross distribution or products. With the use of this plant, Nissan is going to produce luxury cars and the Leyland wants to serve volume market. The partners are going to sell the products on their individual brand names and the Leyalnd uses Nissan’s dealers in the international markets.

Both the partners produces LCVs with different specifications. Out of 150,000 vehicles 60 percent will be produced by the Leyland and the remaining 40 percent will be manufactured by the Nissan.

The Hinduja Group the parent company of Ashok Leyland signed three joint ventures with the Nissan group. The new industrial factory originally was to be started in 2009 but both companies decided to postpone this because of the economic downturn.

By MND A01