The government on Thursday approved a Rs 1,650 crore investment proposal by German automobile giant Dailmer AG in its joint venture with the Hero Group to manufacture trucks and other commercial vehicles.
The joint venture, which was announced in December last year, will also be sourcing components from India for Daimler’s global requirements.
“The joint venture will also undertake research and development activity for new products and variants,” an official spokesperson said after the meeting of the Cabinet Committee of Economic Affairs that approved the proposal.
Daimler would contribute 60 per cent equity in the company, the spokesperson said. The company will design, manufacture and sell of commercial vehicles for Indian and overseas markets.
The projected joint venture is first aimed at local production of light-, medium- and heavy-duty commercial vehicles for the Indian market. Production for export markets is expected to follow.
The vehicles produced will be variants of Daimler trucks’ current product portfolio tailored for the Indian market. Daimler trucks are currently present in India with local manufacturing operations of the Mercedes-Benz Actros in Pune.