The Ashok Leyland and Nissan project will be operational soon. The project started the first step after signing the MoU with the TN government. A land of 380 acres would be acquired to set up the facility.

It will be set up at Pillaipakkam which is located 40 KM away from Chennai. The MoU was signed between the state's industries secretary MF Farooqui, R Seshasayee and Andy Palmer.

The chief minister of Tamil Nadu was also present on the occasion. The state government said that the set up of this project would increase the chances of employment in the state. The project is expected to give employment to around 4500 people directly and indirectly.

Vehicle and power train manufacturing facilities with a modern technology unit would be set up in the plant. The first vehicle from the plant is expected to come in the market by 2010-11. The plant would be designed to manufacture one lakh LCVs a year in the first phase. Its capacity would be increased to1.90 lakh vehicles in the near future. The state has announced many concessions for the utilities.

The newly formed joint venture is also expected to set up a utility for Medium Duty Vehicles (MDV) capacity across its existing plants in Ennore and Hosur in Tamil Nadu.