Nissan forms partnership with Ashok Leyland for light commercial vehicles

This first stage of the partnership between the companies will include the development, manufacture and cooperation for distribution of LCV products under both the Nissan and Ashok Leyland brands, subject to various corporate and statutory approvals from both sides.

The three joint venture companies detailed in the HoA are to cover three business areas which include Vehicle Manufacturing Company, a company with exclusive rights to manufacture LCV products in India for both the partners, Powertrain Manufacturing Company, which is responsible for the manufacture and assembly of engines and other drivetrain components to be fitted in the LCV products and for exports and Technology Development Company for the development of LCV products and related powertrains, destined for the Indian and identified emerging markets.

"With the LCV Breakthrough in Nissan completed one year early, we are now moving to the next phase of growth - India will be fundamental in this. Ashok Leyland represents the perfect partner for augmenting this growth and we are pleased to have reached this HoA milestone", said Andy Palmer, Vice president and head of Nissan Light Commercial Vehicles Business Unit (LCV-BU).

In addition, the two partners are also studying cooperation in the area of sales and distribution. This includes providing access for Nissan to Ashok Leyland's dealer network in India and for Ashok Leyland to use Nissan dealer networks in identified export markets outside India.

"This agreement will broaden the presence of Nissan in India in addition to providing new LCV products for the emerging Indian markets. India's LCV industry is developing very rapidly and Nissan is committed to provide an exciting LCV line-up to its Indian customers," added Palmer.

Reza Alavi, Head of Light Commercial Vehicles Business Unit at Nissan Middle East commented: "We are pleased to start rolling out the development and expansion plans of the global LCV Business Unit, which cascade to each region based on its market requirements."

Following the signing of the HoA, both companies will now embark on a detailed feasibility study covering all proposed areas of cooperation. This study will lead to the signing of a Memorandum of Understanding and the subsequent formation of the legal partnership. This study is expected to conclude by October 2007.