NEW DELHI - Germany's Daimler AG and India's Hero Group announced Monday a five-year, 700-million-euro (1.1-billion-dollar) joint venture to make trucks in India.
Daimler has invested 220 million euros in the project, which will mainly use parts sourced locally, the companies said in a statement.
They also said talks were on with three Indian state governments to build a plant capable of producing an unspecified number of light, medium and heavy trucks following government approval for the joint venture in March.
The Daimler Hero Motor Corporation plans to sell the trucks through Hero Group's extensive network of dealers under another joint venture, Hero Honda, which is the world's leading motorcycle maker, the statement said.
Daimler AG is the world's leading truck maker, the statement said.
"The new company is aiming to achieve a localisation rate of up to 80 percent in order to optimally utilise cost advantages," the statement said.
"Production of commercial vehicles for export to other emerging markets will also be launched thereafter."
Analysts forecast India will continue to be one of the world's fastest-expanding vehicle markets as middle-class incomes keep climbing and the government builds new highways to criss-cross the nation.
ejl/skj
04/21/2008 11:29 GMT