Ashok Leyland-Nissan’s 8-yr-old alliance heading for divorce

The 8-year-old partnership between Ashok Leyland and Nissan is heading for a break-up with the Japanese firm serving termination notice for one of the three joint ventures they have formed together in the latest flare-up between the partners. 

The development comes after the Indian partner dragged Renault Nissan Automotive India Pvt Ltd (RNAIPL) to the court over alleged violations of contract agreement and flouting of Export Promotion Capital Goods (EPCG) scheme regulations. 

In May 2008, Ashok Leyland and Nissan had formed three JVs — Ashok Leyland Nissan Vehicles Ltd (ALNVL) for vehicles manufacturing; Nissan Ashok Leyland Power Train Ltd (NALPT) for making power trains; and Nissan Ashok Leyland Technologies Ltd (NALT), which is a technology joint venture. The partners have invested about Rs 1,000 crore as equity between then.

“The future of the partnership looks bleak. Already Nissan has served a termination notice for the technology joint venture. There are lots of differences between the partners,” a source said. When contacted, spokespersons of both Ashok Leyland and Nissan India declined to comment on queries regarding the future of their partnership.