Daimler, Hero Group in commercial vehicle JV
Daimler Trucks, the commercial vehicle business unit of the German automobile giant Daimler AG, announced its joint venture agreement with the Munjal-promoted Hero Group to produce its full range of commercial vehicles.
Both companies have signed today a shareholder agreement and are in the process of submitting the formally required application to the FIPB (Foreign Investment Promotion Board) for approval.
The unnamed joint venture will make light, medium and heavy duty trucks, initially targetted at the local market. The JV will aim to export volumes at later stages. The vehicles produced will be variants of Daimler Trucks’ current product portfolio tailored to the Indian market.
However, Daimlers’ local outfit, DaimlerChrysler India will continue to produce the Actros range of high-end trucks through assembly, at its Pune facility, a company release stated.
Andreas Renschler, member of the Daimler Board of Management & head of Daimler Trucks, said: "The decision to form this joint venture in India marks a milestone in Daimler Trucks’ overall strategy to participate in the fast-growing emerging markets. In Hero we have found an excellent, experienced partner with a long tradition of manufacturing and know-how of the local industry. Hero has a proven track record of managing long-term relationships with global and domestic partners. We believe this is a strong foundation for a long-term co-operation in one of the world’s most dynamic markets."
Sunil Kant Munjal, chairman, Hero Corporate Service, said: "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."
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