Ashok Leyland and Nissan, who have joined hands for manufacturing light commercial vehicles, are planning to roll out their first product by mid-2011.
The two partners have said they will produce 150,000 vehicles as part of their phase I plans from their existing facilities and they said, the greenfield facility is 'very much' on the cards.
Speaking to reporters in Chennai, Andy Palmer, senior vice-president, Nissan Motor Company and chairman, Ashok Leyland Nissan Vehicles said both the partners will use their existing facilities to manufacture and networks to sell vehicles and 'their will not be any cross distribution or products and it will be different brands.'
He added, while Nissan will cater mainly to luxury markets, Ashok Leyland would cater to volume market. The partners will sell the products on their own brands both in the domestic and international market.
"In select international markets, Ashok Leyand will use Nissan's dealers," he added.
First product will be rolled out from the Ashok Leyland's facility at Hosur, while the second product will be from Nissan's facility, which is being set up along with French partner Renault, at Oragdam, Tamil Nadu and third product will be from again Ashok Leland's facility, added V Sumantran, executive vice chairman, Hinduja Automotive Ltd and Chairman, Nissan Ashok Leyland Powertrain Ltd.
Both the partners will manufacture 5-7.5 tonne capacity LCVs, with different specifications which would cater to passenger, including bus, and goods carriers, said Palmer.
"Of the 1.50 lakh vehicles, 60 per cent will be manufactured by Ashok Leyland, while 40 per cent by Nissan," he added.
"With these products we can address 90 per cent of the market," said Sumantran, which is currently at 350,000 units per annum.
While declining to comment on the investment for the phase I, Sumantran said, it will be part of the total investment committed for the joint venture which would be around Rs 2,300 crore (Rs 23 billion).
He added, one fifth or 30,000 units of the total production, phase I of 150,000 lakh units, will be for export markets. Narrating the joint venture as 'Japan quality at Indian cost', Sumantran said the first product will be launched as committed and very much on schedule.
He added, the downturn has forced the company to roll out the products in a faster way.
