Daimler Trucks has announced a joint venture (JV) with the Hero Group to manufacture light, medium and heavy-duty commercial vehicles.

The both companies signed a shareholder agreement, and said they would submit an application with the Foreign Investment Promotion Board with details for the venture.

The equity holding pattern and investment details of the JV have not been announced.

Daimler Trucks is a division of Daimler AG and the world’s largest manufacturer of commercial vehicles.

The Munjal family-controlled Hero Group, which began operations as a cycle maker in 1956, has today transformed itself into the country’s largest two-wheeler maker.

Andreas Renschler, head of Daimler Trucks said “In Hero, we have found an excellent, experienced partner with a long tradition of manufacturing, know-how of the local industry and a proven track record of managing long term relationships with partners."

Sunil Kant Munjal, Chairman of Hero Corporate Service said "The partnership with the Daimler Trucks marks our foray into the four-wheeler space. This initiative is in pursuance of the Hero Group’s long-term vision and strategy to have a diversified portfolio of high-growth businesses by building on its core competencies and expertise."

Daimler Buses recently announced its plans to sign a cooperation deal with Indian company Sutlej Motors, and will begin producing bus bodies for Mercedes-Benz luxury coaches in Pune in the first quarter of 2008. 

Daimler said the deal should close by the end of the first quarter of 2008.