Nissan, India's Ashok eye commercial vehicle ventures

Nissan Motor Co. said Wednesday it has agreed with Indian commercial vehicle maker Ashok Leyland to study the formation of three joint ventures in the light commercial vehicle sector.

The ventures would be a company to produce light commercial vehicles for both Nissan and Ashok Leyland, a company to make engines and other drivetrain components for the commercial vehicles, and a technology development company to develop the vehicles for India and other emerging markets, Nissan said.

Ashok Leyland would hold a majority stake in the vehicle manufacturing company, while Nissan would have a controlling interest in the power-train manufacturing company.

The technology development company would be equally owned.

In addition to the three joint ventures, Nissan and Ashok Leyland will study a sales and distribution alliance under which Nissan would gain access to Ashok Leyland's dealer network in India while the Indian firm would use Nissan's networks in emerging economies outside India.