Ashok Leyland-Nissan deal delayed

The greenfield manufacturing facility proposed by Ashok Leyland and Nissan for manufacturing light commercial vehicles (LCVs) in Tamil Nadu is getting delayed due to land acquisition, according to company’s senior official.

V Sumantran, executive vice chairman, Hinduja Automotive Ltd and chairman, Nissan Ashok Leyland Powertrain Ltd said that the joint venture partners are planning to set up the facility at Sriperumbudur, near Chennai.


“We would require 380 acres and there has been some delay in acquiring the land we are in talks with the state government to allocate the required land for the project. So far we haven’t got anything,” he said.

It may be noted, Ashok Leyland’s parent Hinduja Group signed three JVs with Nissan Motor in October 2007 and planned to spend Rs 2,300 crore on LCV manufacturing, engine manufacturing and technology development facilities.

The greenfield facility was supposed to go on stream in 2011. However, in 2009, both partners decided to put the project on hold “temporarily” stating that “it was due to the economy slowdown.”

Sumantran said, as part of phase I interim measure both the partners have decided to use the existing facilities of Ashok Leyland’s at Hosur and Nissan’s facility at Oragdam will be to set up the greenfield facility will be taken up the JV.

He did not commit on any time frame for the proposed facility.