Ashok Leyland, the home-grown automobile manufacturer today announced it has acquired Nissan Motor's light commercial vehicle (LCV) business. Ashok Leyland had three joint ventures (JVs) with the Japanese auto giant - the Ashok Leyland Nissan-Vehicles Limited, Nissan-Ashok Leyland Powertrain Limited and Nissan-Ashok Leyland Technologies Limited, and the company has bought the stake in each of the three JVs.
Ashok Leyland has said that early this year in September 2016, the companies had reached a new arrangement, where Nissan would transfer its ownership in the three JVs to Ashok Leyland subject to statutory approvals. With all necessary approvals now in place, the acquisition was completed for a consolidated consideration of Rs. 3/- paid by Ashok Leyland for all the shares of the three JVs.
Commenting on the company latest acquisition, Vinod K. Dasari, Chief Executive Officer and Managing Director, Ashok Leyland, said, "This is an important milestone in the history of Ashok Leyland. We are very positive on the future of the LCV business which is growing. While we have acquired 100% ownership of the JVs, we will continue to be associated with Nissan for the technology of the existing Dost, Partner, and Mitr models. These are very important products for us and hold tremendous potential both within and outside India. Our association with Nissan continues in a new relationship."
Ashok Leyland Dost
Back in September, Philippe Guérin-Boutaud, Nissan corporate vice president in charge of the Global LCV Business Unit said, "Nissan is committed to India and has invested substantially in manufacturing, research and development and sales networks in the country. We are on track to becoming a major player in the Indian market. Under the licensing arrangement with Ashok Leyland, Indian commercial vehicle customers can continue to benefit from Nissan's engineering, with servicing and parts availability also ensured."
Ashok Leyland also said that it will continue to build the aforementioned three LCVs - Dost, Partner, and Mitr, which are based on Nissan's design, engineering and technology under a licensing agreement. In fact, the two companies have agreed to continue a deal to procure made-in-India parts to Nissan and servicing and part availability for customers will be ensured by a technical support arrangement.
