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Ashok Leyland and Nissan LCV plant location at Pillaipakkam

4,000 new jobs to be created

Announcement  |  Corporate 

The Ashok Leyland – Nissan LCV project crossed a significant milestone today with the signing of a Memorandum of Understanding with the Government of Tamil Nadu for acquiring 380 acres of land to locate the facilities of the joint venture companies at Pillaipakkam, 40 kms off Chennai. The integrated plant will be utilised to set up the vehicle and powertrain manufacturing facilities and a technology development unit for the three companies of the joint venture that was formed in May 2008.

The working of these companies has already been initiated and the joint venture is on course to roll out the first vehicle by 2010-2011. Exports are expected to account for 20% of the first phase capacity of 100,000 LCVs.

The two partners also announced the top management structure of the three joint ventures which reflects the shared responsibilities and control drawing on the domain strengths of each of the companies including the critical functions of product development, quality, manufacturing and procurement.

Executive comments:
Andy Palmer, Corporate Vice President, Nissan Motor Company Ltd., Light Commercial Vehicle Business Unit:

"We are now in the ready to start real world operations in India. With the acquisition of the land in Tamil Nadu, we can now start the construction of the two manufacturing sites for vehicles and engines and we look forward to co-operating with our partner, Ashok Leyland, for a frugal yet high quality vehicle production."

V. Sumantran, Executive Vice-Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd.:

"Taking into account the secular growth trends of the Indian and export opportunities; the joint venture will help both parent companies address the future market. The products likewise anticipate future growth of expectations and will offer customers new levels of performance and experience."

Combined investments to exceed Rs. 40 billion

Ashok Leyland also announced their expansion plans in respect of their MDV capacity under the MoU with the Government of Tamil Nadu. The Company commits further investments at Ennore, Hosur and new locations including a Greenfield site, near Chennai. These investments will create integrated facilities for engines, gear boxes, press shops, chassis and parts.

The combined investments for the two projects (i.e. the LCV and the MDV projects) will be over Rs. 40 billion. Taken together, the new facilities will create more than 4,000 new jobs in these companies.

The operations will enjoy 21 years' concessions of VAT refund. Investments are scheduled to be completed in 7 – 8 years.

Executive comments:
R. Seshasayee, Managing Director, Ashok Leyland:
"The joint venture with Nissan is a major step in our plans to be a full range player and we are confident that we can meet our production targets by leveraging the combined expertise, market insights and experience of the two partners. The combined investments we have planned in our JV with Nissan and for our own medium and heavy duty vehicle production reflect our commitment to the state of Tamil Nadu where we plan our next cycle of growth."

The Hinduja Group is an investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors. The Group, founded by Shri P.D. Hinduja in 1914, has activities across three core areas: Investment Banking, International Trading and Global Investments. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure, Project Development, Chemicals & Agri business, Energy, Real Estate and Healthcare. The Hinduja Group also supports charitable and philanthropic activities across the world through the Hinduja Foundation.

Ashok Leyland is the flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in India with 07-08 turnover of more than US $ 2 billion. With six manufacturing locations at Chennai, Hosur (three plants), Alwar and Bhandara, the Company has an annual production capacity of 84,000 vehicles with additional 100,000 vehicle capacity planned by 2010. The Company has associate companies in the Czech Republic and the UAE and joint ventures in Sri Lanka and Bangladesh, besides exports to over 20 countries worldwide.

Nissan Motor Company generated global net revenues of 10.824 trillion yen in 2007. Nissan is present in all major auto markets worldwide selling a comprehensive range of cars, pickup trucks, SUVs and light commercial vehicles under the Nissan and Infiniti brands. Nissan employs over 224,000 people worldwide.

The Nissan GT 2012 five-year business plan is focused on the company's long-term performance combined with its responsibilities to stakeholders as a significant global business. The three commitments are:



  • Quality leadership
  • Zero-emission vehicle leadership
  • Five percent revenue growth on average over five years (FY2008 to FY2012)

    For more information on Nissan LCV:


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    First Published: Mon, September 08 2008. 00:00 IST