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.