Ashok Leyland, India’s commercial vehicle Industry has made announcement that the company has inked a joint venture (JV) pact with John Deere, for manufacturing and marketing of construction equipment. 

John Deere is world`s largest maker of equipment for agriculture and forestry and a major equipment dealer for construction and lawn and turf care.

The JV aims to start production by early 2010 and will first launch Backhoes and Four-wheel-drive Loaders. 

According to the sources, the 50:50 JV will bring together Ashok Leyland`s expertise in the automotive segment, their marketing and distribution strength and John Deere`s technical know-how and vast experience in the business of construction equipment.

Stock of Ashok Leyland ended the day at Rs 26, up 2.12 percent on National Stock Exchange.