Daimler, Hero in $1.1 billion JV to make commercial vehicles

21 April 2008

Daimler AG, the world's largest truckmaker, has entered into a joint venture with Hero Group that will invest Rs4,400 crore ($1.1 billion) to make commercial vehicles in India in the next five years.

The joint venture - Daimler Hero Motor Corporation - will start truck production under a new brand name by 2010, initially for the Indian market and later for exports as well, the two companies said in a joint statement.

Stuttgart, Germany-based Daimler and New Delhi-based Hero will make light, medium and heavy commercial vehicles from 2010, the statement added.

Daimler will hold a 60 per cent stake in the venture, with Hero holding the rest. The Hero Group will invest Rs900 crore ($225 million) and the rest of the investment will be financed through debt.

Hero Group managing director Sunil Kant Munjal will be the chairman of the joint venture.

Marc Llistosella of Daimler will be the chief executive officer and Hero Group's Amit Chaturvedi will serve as co-chief executive officer.