The Joint Venture (JV) between the Daimler AG of Germany and the Indian company, Hero Group has recently got the approval from the government of India. Daimler is making a huge investment of Rs 1,650 crore in this JV company that has been formed for manufacturing the commercial vehicles. The company would hold a 60 per cent of the equity capital of the JV, with this investment and an official spokesperson from the government has stated that the investment was approved after a meeting of the Cabinet Committee on Economic Affairs.
According to the sources related to the JV formation, the newly formed company will design, manufacture and also sell commercial vehicles of above 2 tonnes for both the Indian and overseas market. One of the sources said that the JV would also source auto components from India for meeting the global requirements of Daimler and would undertake research and development activity for the new products and variants. The source added that the JV was announced by Daimler and Hero Group in the ending part of the last year and the companies said that the JV would manufacture light, medium and heavy commercial vehicles.
While talking about the JV company, one of the top officials from the company has stated that the new JV would manufacture LCVs and M&HCVs for the domestic market in the initial period and it would also export those vehicles at a later stage. The official said that the vehicles produced by the JV would be the variants of Daimler Trucks current product portfolio, that would also be fine tuned for suiting the Indian market conditions. The industry sources added that the Daimler Trucks is currently operating in India through a commercial vehicles and bus assembly plant in Chakan near Pune, in the state of Maharashtra.
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| Posted : 3/28/2008 |
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