Daimler, Hero JV Receives Approval From Govt

The Union Cabinet on Thursday has given sanction to the Rs. 1,650-crore investment by Germany’s Daimler AG on its planned joint venture with the Hero group for manufacturing commercial vehicles.

Daimler will hold the major stake of 60% in the JV, which envisages a total equity infusion of Rs 2,750 crore by the partners.

The JV will design, create and sell commercial vehicles of above two tonnes for Indian plus abroad markets.

Besides undertaking R&D activities for new products and variants, the new JV would supply components from Indian market for Daimler’s worldwide requirements.

Daimler and the Hero group made announcement to form a joint venture for manufacturing light, medium and heavy commercial vehicles during the last year (2007).

At first, the joint venture would make light commercial and heavy and medium commercial vehicles for the India followed by exports at a later stage.

The vehicles produced would be variants of Daimler Trucks’ current product portfolio, which would be fine tuned to suit the Indian market conditions.

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