New Delhi: Two-wheeler major Hero has signed a joint venture with the world’s largest truck maker Daimler to manufacture commercial vehicles for the Indian market.
Daimler and Hero will invest Rs4,400 crore in the new company, as the German giant looks for growth beyond the North American market. The venture will compete with market leader, Tata Motors, and other entrenched players like Ashok Leyland.
Though the company is yet to finalize its manufacturing location, it has decided that the initial production capacity would be 70,000 units. 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,
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.