DJ: Ashok Leyland Signs Pact With Japan's Nissan Motor
MUMBAI (Dow Jones) - Ashok Leyland Ltd. said it has signed a pact with Japanese automobile maker Nissan Motor Co. Ltd.to form three joint ventures to make and distribute light commercial vehicles under the brand names of both companies.
The companies will form a manufacturing unit, an engine manufacturing unit and a technology development unit, they said in a joint statement to the National Stock Exchange.
The statement said India's Ashok Leyland will own a majority stake in the vehicle manufacturing unit, which is expected to produce above 100,000 units a year in the medium term.
Nissan will own a majority stake in the engine manufacturing unit, while the technology development will be held equally by both companies, the statement said.
"This partnership with Nissan will allow Ashok Leyland to expand into the fast-growing LCV segments in India," said Managing Director of Ashok Leyland R. Seshasayee in the statement.
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