Ashok Leyland Ld
29 August 2007

         ASHOK LEYLAND AND NISSAN AGREE TO FORM PARTNERSHIP FOR LCV 

          - Heads of Agreement signed to form three JV companies -

CHENNAI / TOKYO (August 29, 2007) - Ashok Leyland and Nissan Motor Co., Ltd.,
today signed a Heads of Agreement (HoA) for the formation of three joint venture
companies supporting the Light Commercial Vehicle (LCV) business. This first
stage of the partnership between the companies will include the development,
manufacture and cooperation for distribution of LCV products under both the
Ashok Leyland and Nissan brands. These are subject to various corporate and
statutory approvals from both sides.

The three joint venture companies detailed in the HoA 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 majority owned by Ashok Leyland. In the
medium term, production volume (for Indian and export markets) is expected to be
above 100,000 units annually,

Powertrain Manufacturing Company - responsible for the manufacture and assembly
of engines and other drivetrain components to be fitted in the LCV products and
for exports. Manufacturing will be located in India and the company will be
majority owned by Nissan Motor Company.

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

In addition, the two partners are also studying cooperation in the area of sales
and distribution. This includes providing access for Nissan to Ashok Leyland's
dealer network in India and for Ashok Leyland to use Nissan dealer networks in
identified export markets outside India.

Commenting on this proposed co-operation, Mr. Gopichand P. Hinduja, President of
the Hinduja Group of Companies observed that 'By signing this Heads of
Agreement, both Ashok Leyland and Nissan Motors seek to fulfill their
aspirations to address the growing light commercial vehicle market jointly by
leveraging their mutual strengths'.

Underlining the synergy, said Mr. Dheeraj G Hinduja, Co-Chairman, Ashok Leyland,
'Possibilities are immense, for a win-win collaboration, by bringing together
Nissan's tradition of engineering excellence with Ashok Leyland's intimate
knowledge of the market and cost efficient value addition in India.'  

Said Mr. R Seshasayee, Managing Director of Ashok Leyland: 'Ashok Leyland has
been consolidating its growth in Medium and Heavy Commercial Vehicles even while
exploring suitable opportunities to expand the total product portfolio. This
partnership with Nissan, renowned for their product engineering and a wide range
of LCV products, will allow Ashok Leyland to expand into the fast growing LCV
segments in India. We look forward to harvest the full potential of the two
organizations.'

Mr. Carlos Ghosn, Nissan President and CEO: 'Our LCV business and overall
expansion into India represents two of the biggest growth opportunities for
Nissan in the medium and long term. Following previous announcements relating to
expanding our passenger car business in India, this latest investment will
broaden our coverage of this market in addition to providing new LCV products
for emerging markets. In this regard, we very much look forward to the
partnership with Ashok Leyland.'

Mr. Andy Palmer, Corporate Vice President, Nissan: 'With the LCV Breakthrough in
Nissan completed one year early, we are now moving to the next phase of growth -
India will be fundamental in this. Ashok Leyland represents the perfect partner
for augmenting this growth and we are pleased to have reached this HoA
milestone.'

Following the signing of the HoA, both companies will now embark on a detailed
feasibility study covering all proposed areas of cooperation. This study will
lead to the signing of a Memorandum of Understanding and the subsequent
formation of the legal partnership. This study is expected to conclude by
October 2007.

The Hinduja Group is an 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 & Rnance,
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's global operations include automotive styling,
engineering, consumer and corporate financing, sales and marketing, distribution
and manufacturing. Since its establishment in 1933, Nissan has gained confidence
and trust of customers around the world through its distinguished design and
quality of its automobiles not only Japan but also in the United States, Europe
and other markets of the world. Nissan currently has manufacturing sites in
Japan, United States, Untied Kingdom, Spain, Mexico, China, South Africa,
Thailand, Egypt, etc. and the sales volume of Nissan brand vehicles in the world
for the fiscal year 2006 exceeded 3.5 million vehicles. Nissan currently employs
182,273 people worldwide.

Nissan also manufactures, sells and distributes the luxury line-up under the
Infiniti brand in the United States, GCC, Taiwan, Korea, China and Russia.
Nissan's presence in the world is even more enhanced through the Renault-Nissan
Alliance that was established in 1999 with the view to create synergies in any
part of the world.



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Contacts:

Ashok Leyland
Thomas T. Abraham
Tel: +91 - 98412 91292 
www.ashokleyland.com

Nissan Motor Co., Ltd.
Communications CSR Department
Global Communications CSR and IR Division
Tel: +81-(0)3-5565-2141
http://press.nissan-global.com/EN



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