New Delhi: Hinduja Group flagship company Ashok Leyland has said that its joint venture (JV) project with Japan’s Nissan to manufacture light commercial vehicle has been delayed by six months due to delays in land acquisition.
“Our light commercial vehicle project with Nissan is on track although there has been a delay in land acquisition which has forced us to delay by another six months,” Ashok Leyland Managing Director R Seshasayee said on the sidelines of World Economic Forum’s India edition.
The project which was initially slated to kick off in early 2011 has how been delayed till mid 2011.
Ashok Leyland and Nissan had formed a JV to manufacture light commercial vehicles (LCVs) in the 6-9 tonnes category. The project is slated to come up at Chennai in Tamil Nadu.
Seshasayee also said that the company which is currently running a three day working week at its manufacturing plant due to a slowdown in commercial vehicles demand, expects demand to return to normal in the next year.
“The problem with the commercial vehicles market is the lack of finance and not necessarily a lack of demand. We expect liquidity in the system which will spur demand again,” Seshasayee said.