Daimler Sets Truck Venture With Indian Firm

Daimler AG and India’s Hero Group will invest about $1.1 billion in the next five years as Daimler seeks to expand in India, the company said.

Daimler Hero Motor Corp., as the venture will be known, will begin making trucks, initially for the Indian market, under a new brand name by 2010, with export production to follow, the two said in a joint statement.

The company follows Sweden-based Volvo AB, Germany-based MAN AG and U.S. company Navistar International Corp. in setting up truck joint ventures in India to capitalize on growing demand for heavy transport vehicles, Bloomberg reported.

India has the world’s fastest growing major economy after China, with gross domestic product estimated to be growing by almost 9%, Bloomberg said.
 
Daimler, which will invest about $350 million in the venture, already makes Mercedes-Benz Actros trucks at its own plant in the Indian city of Pune, Bloomberg reported.