Daimler completes Indian truck joint venture. From left to right: Chairman of the Hero Group, Mr. Brijmohan Lall Munjal, Head of Daimler Trucks, Andreas Renschler, Chairman of the Hero Corporate Service, Sunil Kant Munjal, and Managing Director of Hero Honda Motor, Pawan Munjal . Click image to enlarge

Stuttgart, Germany – The Indian Hero Group and Daimler AG have signed a contract in Delhi that governs the establishment of the Daimler Hero Motor Corporation Limited commercial vehicle joint venture. The company will initially produce light, medium and heavy-duty commercial vehicles for the Indian volume market under a new brand name.

The search for a suitable production location is currently underway, with negotiations conducted with three Indian states. Once a decision is made, construction will begin on a plant that will start manufacturing commercial vehicles in 2010.

The new company is aiming to achieve a localization rate of up to 80 per cent in order to optimally utilize cost advantages. Production of commercial vehicles for export to other emerging markets will be launched at a later date.

The total investment of the joint venture will be over €700 million over the next five years. The company will be managed jointly by the two partners.