Chennai, May 26 (IANS) Indian commercial vehicle major Ashok Leyland Ltd and Japanese Nissan Motor Company have floated three joint venture companies, with a total investment of around Rs.23 billion ($575 million), for manufacture of light commercial vehicles (LCV), power trains and technology development. For this purpose, the two companies signed their Master Cooperation Agreement last October, and formalised it now.

Ashok Leyland Nissan Vehicles Pvt Ltd, the vehicle manufacturing company, will be owned 51 percent by Ashok Leyland and 49 percent by Nissan. Nissan Ashok Leyland Powertrain Pvt Ltd, the power train manufacturing company, will be owned 51 percent by Nissan and 49 percent by Ashok Leyland, while Nissan Ashok Leyland Technologies Pvt Ltd will be a 50:50 owned the technology development company.

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

Among the three platforms identified, covering applications up to 7.5 tonne Gross Vehicle Weight, is an all-new generation Nissan Atlas F24 light-duty truck.

In addition, an all-new engine is being developed specifically for LCV applications, as part of the range of Euro-3 and Euro-4 compliant diesel engines.

“The balanced joint venture structure facilitates meaningful contribution from both partners and the best opportunity to leverage their respective strengths,” said R.Seshasayee, managing director, Ashok Leyland.

Speaking about the venture, Nissan executive vice-president Carlos Tavares said, “We made another important step in the creation of a solid structure that will allow Nissan and Ashok Leyland to enter successfully the LCV market in India and global markets.”