News

Following Volvo's announcement of a joint venture with Eicher Motors, Daimler Trucks has signed a deal with Indian OEM Hero Group. A joint venture for the production of what Daimler calls 'localised variants of Daimler Truck's current portfolio" is to be established. The existing production of the Actros model seems likely to remain with DaimlerChrysler India Pvt Ltd - Daimler's wholly owned Indian subsidiary - and, at present, no decision has been taken with regards to the production of Fuso-badged  models.

Management control is instrumental to this deal. A Daimler spokesman explained that, while the detailed structure will not be announced until the early months of 2008, the German OEM would have a majority stake. This issue has affected negotiations with Ashok Leyland and Eicher, with which Daimler had held detailed, though ultimately fruitless, discussions.

The choice of Hero Group, better known as a manufacturer of motorbikes, is an interesting one and can probably be attributed to the fact that no other Indian automotive player was open to JV discussions. AB Volvo's deal with Eicher means that, with the exception of AMW, the entire Indian truck industry is now allied in some way with either European or, in the case of Mahindra, US companies.