The Indian motor company, Ashok Leyland, and Nissan of Japan have agreed to form a partnership to produce Light Commercial Vehicles (LCVs).

They aim to make 100,000 vans a year in Indian factories for both the domestic market and export.

Correspondents said the deal underlined Nissan's growing commercial interest in India, where demand for vehicles and trucks is rising fast.

Much of that is because of the country's strong economic growth.

'Our LCV business and overall expansion into India represent two of the biggest growth opportunities for Nissan in the medium and long term,' Carlos Ghosn, Nissan's president, said.

The Japanese firm is eager to increase its presence in India to benefit from relatively low labour costs and an economy growing at around 9% a year.