Hinduja Group's Ashok Leyland and Nissan Sign Agreement for LCV Partnership

Tokyo (ots/PRNewswire) -

- Project investment estimated at US$ 500 million

Hinduja Group flagship Ashok Leyland and Nissan Motor Co., Ltd.,
today signed a binding Master Co-Operation Agreement (MCA) for the
formation of three joint venture companies supporting the Light
Commercial Vehicle (LCV) business. The agreement was signed in
Chennai today by Mr. R. Seshasayee, Managing Director of Ashok
Leyland and Mr. Carlos Ghosn, President and CEO of Nissan Motor Co.,
Ltd.

This agreement follows the signing of the Heads of Agreement (HoA)
document in August and reflects progress achieved with the detailed
project evaluation. It formalizes the partnership between the
companies, which will include the development and manufacture of LCV
products under both the Ashok Leyland and Nissan brands as well as
cooperation in sales.

The two companies anticipate an investment in the neighbourhood of
US$ 500 million for the creation of three joint venture companies
that are to cover the following business areas:

Vehicle Manufacturing Company - a company with exclusive rights to
manufacture LCV products in India for both the partners.
Manufacturing facilities will be located in India and the company
will be owned 51% by Ashok Leyland and 49% by Nissan. Production will
start in 2010 and will include the new generation Nissan Atlas F24
light-duty truck, in addition to a range of products covering
applications from 2.5 to 8 ton gross vehicle weight (GVW). In the
medium term, production volume, intended for both Indian and export
markets, is expected to grow beyond 100,000 units annually.

Powertrain Manufacturing Company - responsible for the manufacture
and assembly of engines and other drivetrain components to be fitted
in LCV products and for export. Manufacturing will be located in
India and the company will be owned 51% by Nissan and 49% by Ashok
Leyland.

Technology Development Company - responsible for the development
of LCV products and related powertrains, destined for the Indian and
select global markets. This JV company will be owned 50:50 by the two
partners and located in Chennai. The products developed will be sold
under both the Ashok Leyland and Nissan brands.

In addition, the two partners also expect to cooperate to leverage
each other's dealer networks in specific global markets. For example,
this could provide Nissan with access to Ashok Leyland's dealers in
India and for Ashok Leyland, access to Nissan dealer networks in
specific export markets.

The JV is also set to benefit from leveraging the sourcing
strengths of both the partners.

Executive comments:

Mr. Gopichand P. Hinduja, President of the Hinduja Group of
Companies:

"The Hinduja Group is firmly committed to the expansion of its
automotive business globally. Nissan, under the leadership of Mr.
Carlos Ghosn, has shown exemplary vision in using partnerships for
growth. With this partnership I am confident that Ashok Leyland's
growth plans in the LCV business will be realised."

Mr. Dheeraj G Hinduja, Co-Chairman, Ashok Leyland:

"We hope to leverage Ashok Leyland's marketing insight, product
development capabilities and dealer network, together with the
excellent engineering foundations inherent in Nissan's global
products. The products will set new benchmarks in technology and
customer value."

Mr. R Seshasayee, Managing Director, Ashok Leyland:

"An effective entry into the LCV segment has been on Ashok
Leyland's radar for some time now. This partnership with Nissan will
allow both companies to develop a range of cost-competitive and
customer-oriented LCVs targeted not only to the Indian market but
several select markets overseas. We are confident that the JV
structures will facilitate both companies to achieve this objective
with equitable contributions."

Mr. Carlos Ghosn, President and CEO, Nissan:

"The LCV business is one of Nissan's most important global growth
engines. This agreement accelerates our LCV business in India and
lays the foundation for further growth through exports. Ashok Leyland
shares our vision of a successful win-win partnership, where both
companies are focused on value generation for all stakeholders. We
see India emerging as an important hub in Nissan's global LCV
manufacturing footprint."

Mr. Andy Palmer, Corporate Vice President, Nissan:

"With the launch of our first product in 2010 we will be able to
participate in the growth of the Indian LCV market with reliable and
innovative vehicles that will match the expanding need for
transportation of light cargo in small to medium distances.

We are now focused on selecting the best production site to ensure
the optimum mix of efficiency of operations, logistics and quality of
the output."

The Hinduja Group is a multi-billion dollar global investment and
banking group with a diversified global portfolio of holdings across
the manufacturing services and banking sectors. The Group, founded by
Shri P.D. Hinduja in 1914, has activities across three core areas:
Investment Banking, International Trading and Global Investments. As
part of its Global investments, the Group owns businesses in
Automotive, Information Technology, Media, Entertainment &
Communications, Banking & Finance, Infrastructure Project
Development, Chemicals & Agri business, Energy, Real Estate and
Healthcare.

The Hinduja Group also supports charitable and philanthropic
activities across the world through the Hinduja Foundation.

Ashok Leyland is the flagship of the Hinduja Group and a leading
manufacturer of commercial vehicles in India with 06-07 sales
turnover of more than US$ 2 billion. With six manufacturing locations
at Chennai, Hosur (three plants), Alwar and Bhandara, the Company has
an annual production capacity of 84,000 vehicles which is being
enhanced to 100,000 in the current year. The Company has associate
companies in the Czech Republic and the UAE and joint ventures in Sri
Lanka and Bangladesh, and also exports to over 20 countries
worldwide.

Nissan Motor Company generated global net revenues of 10.468
trillion yen in 2006. Nissan is present in all major global auto
markets selling a comprehensive range of cars, pickup trucks, SUVs
and light commercial vehicles under the Nissan and Infiniti brands.
Nissan employs over 180,000 people worldwide.

Under the Nissan Value-Up business plan, the company continues to
focus on long-term sustainable and profitable growth driven by three
commitments:

- To maintain top level of operating profit margin among
global automakers

- To achieve global sales of 4.2 million units in 2009

- 20% return on invested capital on average over the course of
the plan

In 2007, Nissan will introduce 11 all-new products globally,
with a further 33 to be introduced during the following three years.

http://www.ashokleyland.com

http://press.nissan-global.com/EN

ots Originaltext: Nissan Motor Co., Ltd.
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Contacts: Hinduja Group, Jayaram Ramanathan, Tel: +91-986-721-2997:
Ashok Leyland, Thomas T. Abraham, Tel: +91-984-129-1292: Nissan Motor
Co. Ltd., Communications CSR Department, Global Communications CSR
and IR Division, Tel: +81(0)3-55-652-141