Ashok Leyland Ltd., the flagship company of Hinduja Group, has announced the signing of three separate joint venture agreements with Japan-based Nissan Motor Co. Ltd for development, manufacture and sale of light commercial vehicles and power trains.

According to Ashok-Nissan, the aggregate investment in all three companies will be around Rs 2300 crore (approx. 575 Million USD).

The latest announced agreement follows the signing of the master co-operation agreement between the two companies in October 2007.

In first venture christened Ashok Leyland Nissan Vehicles, the vehicle manufacturing company, Ashok Leyland will own 51 per cent and Nissan Motor will hold 49 per cent.

While in the second venture named Nissan Ashok Leyland Powertrain Pvt. Ltd, the powertrain manufacturing company, Nissan will hold 51 per cent while the remaining stake will be owned by Ashok Leyland.

However, both the companies will be equal partners in third venture, Nissan Ashok Leyland Technologies, the technology development company.

The Vehicle manufacturing enterprise will involve a capacity of 100,000 vehicles in the first phase and will be scaled up subsequently.
The plant is expected to start production from 2010-11.