Ashok Leyland Stile and Dost to be built at new plant

Ashok Leyland and Nissan Motor Company, Japan have come together in a joint venture which will include development and manufacture of Light Commercial Vehicles in the 2.5 to 7.5 tonne capacity. The products will be marketed under both the Ashok Leyland and Nissan brands.

The joint venture will entail three separate companies for Vehicle Manufacturing, Power Train Manufacturing and Technology Development and the first offering will be in the form of a 2.5 tonne Dost that has instantly proven its worth in the markets where it has been launched.

Ashok Leyland Stile and Dost to be built at new plant 1

However there has been a slight delay in getting this joint venture project off the ground. The reasons included delay in land acquisition, higher rate of interest and a sense of gloom across the commercial vehicle market in the country. The company also did not have any committed commercial product time line for its Greenfield production plant. The new Greenfield plant is spread over an area of 280 acres near Chennai and while all clearances for construction have been received, actual construction has not yet commenced.

Once completed, the joint venture will see production of Ashok Leyland Dost and Nissan Style moved to this facility. The two companies have invested an amount of INR 1250 crores out of a total investment of INR 2500 crores and the new plant will have total capacity of 1.5 lakh units per annum. The JV will also see 27 seater buses and trucks below 8 tonne capacities being introduced once construction is completed. (source)