Ashok Leyland has reportedly decided to defer its JV plans with Nissan to
manufacture light commercial vehicle near Chennai by six months citing financial
meltdown and delay in land acquisition.
Moreover, the company is planning to slash its investment in the project. The
company has brought down capex plan by Rs 1,000 crore for the next three years
to Rs 2,000 crore from Rs 3,000 crore, which was earlier planned.
As per the current plans, the production from the JV plant in Chennai is
expected to start in 2011. Initially, the JV were planning to produce three,
four and six tonne vehicles, now in addition to that Nissan is looking at
producing some more products for overseas markets.
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