New Delhi  - World's largest truck manufacturer Daimler AG and India's Hero Group will invest 44 billion rupees (1.1 billion dollars) over five years in a joint venture to make commercial vehicles, the companies announced Monday.

The two companies signed an agreement in New Delhi to form a company called the Daimler Hero Motor Corporation Ltd., in which the Germany-based auto-major would have a 60 per cent stake and the remaining with Hero.

The company will begin making light, medium and heavy commercial vehicles for the local market from 2010 under a new brand name. The production of commercial vehicles for export to other fast-growing markets will be launched thereafter.

The Indian government last month approved the joint venture which will also source components from India for Daimler's global requirements and undertake research and development activity for new products and variants. (dpa)