The Indian Hero Group and Daimler AG signed a contract in Delhi that governs the establishment of the Daimler Hero Motor Corporation Ltd. Commercial vehicle joint venture.
Approval for the new company was issued by the Indian government in March 2008, and the two partners now plan to proceed rapidly with the implementation of the joint venture.

The Daimler Hero Motor Corporation 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 under way. Negotiations are being conducted with three Indian states and are expected to conclude shortly.

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% in order to optimally utilize cost advantages. Production of commercial vehicles for export to other emerging markets will be launched at a later date.

Marc Llistosella, who directed the joint venture project from the Daimler side, will become CEO of the new corporation. Amit Chaturvedi, currently president, Strategy and Business Development, at Hero Corporate Service and project leader from the Hero Group, will serve as co-CEO. Sunil Kant Munjal will be the chairman of the new company. The company will be managed jointly by the two partners.

More info:www.media.daimler.com