Business IdeasAshok Leyland-Nissan LCV plant's construction deferred
Hinduja Group firm Ashok Leyland today said that construction of its proposed facility to make light commercial vehicles (LCVs) in partnership with Japan"s Nissan has been deferred due to sluggish market conditions.
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The company, however, said LCVs under the joint venture would still be made, but initially would be rolled out from the partners" own facilities.
"The construction of the plant has been deferred, but not shelved. We are discussing options with our joint venture partner Nissan, keeping in mind the current market scenario," Ashok Leyland Chief Financial Officer K Sridharan said.
"The vehicles will be launched as planned ... Initially some models will be launched from our Hosur plant, while some other LCVs will come out from Renault Nissan"s facility in Oragadam," he said.
Last year, the two firms announced three JVs for making LCVs, powertrains and developing technology, with an initial target to produce one lakh LCVs, envisaging a total investment of Rs 2,300 crore. For that, the two partners had signed an MoU with Tamil Nadu government to set up an integrated plant at Pillaipakkam, 40 km off Chennai.
The JV had planned to roll out the first LCV by 2010-11.
"The plan has been delayed by few months. Now the LCVs will be launched in 2011 instead of 2010," Sridharan said.