Auto major, Ashok Leyland has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for acquiring 380 acres of land at Pillaipakkam, 40 kms from Chennai, for setting up a plant to produce LCVs in a joint venture with Nissan. The plant will house, among other things, a powertrain manufacturing facility and a technology development unit. The first vehicle is likely to roll out in 2010-11. 

Ashok Leyland also announced its expansion plans in respect of its MDV capacity under the MoU with the Government of Tamil Nadu. The company has committed further investments at Ennore, Hosur and new locations including a Greenfield site near Chennai. These investments will create integrated facilities for engines, gearboxes, press shops, chassis and parts. The combined investments for the two projects will be over Rs. 40 billion. Taken together, the new facilities will create more than 4,000 new jobs in these companies.