Nissan-Ashok Leyland JV faces tax notice of INR 200 crore

Failure to keep up to export obligations has resulted in the Directorate of Customs and Intelligence levying an INR 202 crore tax demand on the Nissan-Ashok Leyland LCV JV. The Directorate has also threatened to seize machines in the factory of Renault Nissan which had been specially imported by them as a part of the JV agreement.

The Custom’s Department has also sent out a demand notice to Renault-Nissan as the company had imported tools, robots and jigs as a part of the deal while these items were imported under Export Promotion Capital Goods (EPCG) scheme offering tax incentives for exports.


With no vehicles exported to date, the customs department was left with no other recourse than to issue a notice. Renault-Nissan has asked for two months time period to pay off this amount while all attempts to contact Ashok Leyland yielded no response.

It was in 2008 that Nissan Motors and Ashok Leyland entered into an agreement for production of small trucks and light commercial vehicles. While Ashok Leyland holds 51% stake in Ashok Leyland Nissan Vehicles, Nissan Motors hold the balance 49%. In Nissan Ashok Leyland Powertrains, Nissan holds 51% stake while Ashok Leyland has 49% holding. In Nissan Ashok Leyland Technologies, both partners have an equal 50:50 stake.

Also Read – Nissan Ashok Leyland JV may get embroiled in a law suit

Through this Nissan-Ashok Leyland LCV JV, Dost was the first launch for Ashok Leyland while Nissan Evalia and Stile were next launches all of which have failed to garner the required attention in domestic markets due to which production had to be stopped while losses went deep.

Ashok Leyland Stile – Photos


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