Vehicle manufacturer Ashok Leyland, through its association with Japanese auto-maker Nissan Motor Company, will roll out two more products in the Light Commercial Vehicle category over the next two years, a top official said on Tuesday.
Announcing their first product carrying Ashok Leyland's badge under the joint venture -- the 'Ashok Leyland DOST' -- in Chennai on Tuesday, Hinduja Automotive chairman and Nissan Ashok Leyland Powertrain Ltd chairman V Sumantran said another product from Nissan's stable would be launched next year.
"Next year, under Nissan's badge, a body-type product will be launched. In the subsequent year, there will be large tonner product from Ashok Leyland. It will have Ashok Leyland's badge", he told reporters in Chennai.
Ashok Leyland and Nissan Motor Company entered into a Master-Cooperation Agreement in October, 2007, for vehicle manufacturing, powertrain manufacturing and technology development. Both companies have envisaged investments of Rs 2,300 crore (Rs 23 billion), Sumantran said.
The companies have identified three platforms in the commercial vehicle segment, covering applications up to 7.5 tonne Gross Vehicle Weight, Sumantran said.
In addition, engines would be manufactured for Euro-III and Euro-IV compliant LCV products, he said. Nissan Motor Company would utilise Ashok Leyland's plant at Hosur in the first phase of their joint project
On their plans for exports, Sumantran said they would initially target the domestic market in the first year and later take the product to overseas markets.
"First year, we will focus on the domestic market and after that we will explore markets which are conducive. We may look into West Asiam market or South African markets," he said.
Sumantran also said they may be required to make another investment after completion of the first phase of the project.
In the second phase, they would set up an exclusive Green Field facility at Pillaipakkam for manufacturing the commercial vehicles, he said, the land for which has already been alloted by the Tamil Nadu government.
For retailing the jointly developed products, Ashok Leyland and Nissan Motor Company would appoint 25 exclusive LCV dealers in the first year of operations, he said.
"The reason for appointing exclusive dealerships is to have a personal interaction with the vehicle owner," he said.
The vehicles that would be jointly produced from the two companies would be powered by an efficient, proven 3-litre, 4-cylinder Common Rail Diesel engine, which would be BS-III and BS-IV compliant, he added.
