Ashok leyland-Nissan to invest Rs 2,500 Cr for its LCVs Unit in TN

Chennai: Ashok Leyland and Nissan to invest around Rs 2,500 crore for setting up a factory near this city to manufacture light commercial vehicles (LCVs).

The company would produce 150,000 vehicles as part of the phase-I plan from their existing facilities in the state, till the new factory goes on stream.

The project will spread across 380 acres at Sriperumbudur (40 km from Chennai).

All necessary approvals have been given. The project will attract around Rs 2,500 crore over four-five years.

The company also plans to export its products to other Asian markets. However, its focus would remain on the domestic market.

The first product will be rolled out from Leyland's at Hosur and the second from Nissan's, being set up with French partner Renault, at Oragadam (45 km from Chennai). The third product will again be from Leyland's facility.

Both partners will manufacture 5-7.5 tonne capacity LCVs, with different specifications which would cater to passenger, bus and goods carriers, said Palmer. Of the 150,000 vehicles, 60 per cent will be manufactured by Ashok Leyland and 40 per cent by Nissan.

The new factory was originally to go on stream in 2011.