Daimler inks JV with Hero Group for manufacturing trucks
It is reported that German automobile giant Daimler's commercial vehicles subsidiary Daimler Trucks has signed a JV agreement with Hero Group to produce its full range of commercial vehicles. Both companies signed a shareholder agreement and are in the process of submitting the application to the Foreign Investment Promotion Board for approval.
The JV will make light, medium and heavy duty trucks, initially targeted at the local market and aims to export volumes at later stages. The vehicles produced will be variants of Daimler Trucks' current product portfolio in India.
Mr Andreas Renschler member of the Daimler management board and head of Daimler Trucks said that "The decision to form JV in India marks a milestone in Daimler Trucks' overall strategy to participate in fast growing emerging markets. Hero has a proven track record of managing long term relationships with global and domestic partners. We believe this is a strong foundation for long term cooperation in one of the world’s most dynamic markets."
Mr Sunil Kant Munjal chairman of Hero Corporate Service said that "The partnership with Daimler Trucks is in pursuance of the Hero Group's long term vision and strategy to have a diversified portfolio of high growth businesses. We can benefit from Daimler Trucks' world class products and technology and combine those with our own strengths to create winning products for Indian and other global customers."
Daimler Trucks is the world's largest manufacturer of commercial vehicles. With its 5 leading truck brands namely Mercedes Benz, Freightliner, Sterling, Western Star and Mitsubishi Fuso, Daimler Trucks sold over 516,000 trucks worldwide and generated revenues of EUR 31.8 billion in 2006.
The USD 4 billion Hero Group's flagship company Hero Honda Motors is the world's largest motorcycle producer. It also makes bicycles.
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