Hero group and Daimler of Germany said on Monday they would invest Rs 4,400 crore (Rs 44 billion) over the next five years to manufacture light medium and heavy duty commercial vehicles in India.
The two companies signed a joint venture agreement on Monday to float a company Daimler Hero Motor Corporation, in which the German company will have 60 per cent stake and the rest with Hero.
The company will start manufacturing commercial vehicles by 2010. The new company is aiming to achieve a localisation rate of up to 80 per cent. The production of commercial vehicle for export to other emerging markets will also be launched thereafter.