Nissan Motor is to form a new joint venture with Nissan Diesel to develop LCVs destined for Europe, Japan and the growth market of China.

The £79m venture will be Nissan's first foray into producing light trucks. While the automaker has had Isuzu build light trucks for it, Nissan has not produced any of the vehicle type itself.

Nissan expects the venture to sell 60,000 vehicles per year in the first year of sales slated for 2006-2007. Of these, 16,000 truck sales are planned for the Japanese market, said a Nissan spokesman.

Nissan will own 85 per cent of the new company while Nissan Diesel will invest 15 per cent.