Daimler-Hero JV Selects Chennai for Truck Facility
Posted on July 7th 2008Welcome back!
Daimler, the world’s largest truck manufacturer, is forming a joint venture (JV) with the Munjals of a Hero group by opening a commercial vehicle plant in Chennai.
The joint venture will invest more than 700 million euro in the next 5-years for this plant, which will create 70000 units a year in the opening beginning 2010 at Oragadam.
The JV will soon start constructing a new plant, which will make commercial vehicles under the new brand title for the increasing Indian market and exports. Daimler Hero Commercial Vehicles (DHCV) is planning to achieve the localization rate of up to 80 percent in order to best use these price merits.
Daimler’s competitor Volvo has a joint venture for medium and light CVs with Eicher group while the MAN motors has too a truck manufacturing partnership in India. DHCV signed MoU (memorandum of understanding) with the government of TamilNadu for a venture which would firstly entail the investment of Rs 3000 crore on Monday.
The MoU was signed in the presence of Mr. M. Karunanidhi (CM of Tamil Nadu), Mr. M.F.Farooqui (State Industry Secretary), Mr. Sunil Kant Munjal (Chairman of Hero Corporate Services), the member of Daimler Board of Management Andreas Renschler and senior officials. This will provide direst service to 3000 people and indirect services to 20000 people.
The plant will build at the SIPCOT Industrial Park, Oragadam over 400 acres. The joint venture already obtained the land.
German vehicle manufacturer already makes Mercedes Benz Actors trucks at their own plant in Pune, where they also assemble Mercedes Benz C-Class, E-Class and S-Class sedans. Daimler has set up the JV with Sutlej Motors to make luxury buses.
By editor in Auto India News