Hero Pulls out of Daimler Commercial JV
Hero Group has now pulled out of its JV with Daimler to produce commercial vehicles. Hero Group cited difficult economic situation and weak demand in India as the reason of withdrawing from the joint venture.
"We are disengaging from the joint venture, but the company (joint venture) will continue to exist and run by Daimler. The reason for it is the current economic slowdown and we would not like to commit such big investment in the circumstances," Hero Corporate Services Chairman Sunil Kant Munja.
Daimler said Hero will maintain a conservative profile from now on. It will focus on its core business and return its 40 percent stake in the joint venture, Daimler Hero Commercial Vehicles Ltd., to its Daimler Trucks unit. No financial details of the break up were revealed.
"In light of the current economic downturn, declining market conditions and the group's strength, Hero Group has decided to maintain its focus and continue to grow its core business and not to pursue the commercial vehicles business at this time," said Sunil Kant Munjal, the chairman of Hero Corporate Service Ltd.
[Via: cartradeindia]
Bajaj KTM bikes to be launched in 2010
Bajaj Auto and KTM is developeing two new motorcycle platforms which is scheduled to hit the market in 2010. Bajaj Auto - KTM has invested 35-40 million euros for the developement of these platforms. The jointly developed bikes would be produced at BAL's Chakan facility for export to Europe under KTM branding and the commuter version of the bike on the same platform could be sold in India under the Bajaj badge.
[Via: vicky]
Bajaj & KTM to make 3 vehicles
Austrian two-wheeler maker KTM Power Sports is developing three intra-city transportation models - a trike, a budget car and a scooter - in a joint collaboration with Bajaj Auto. Bajaj, India's second-largest motorcycle maker, owns 21 per cent stake in KTM.
All of the models will be marketed in developing countries and will have petrol, diesel and electric variants. KTM officials had earlier said that it was studying the possibilities of entering the small-car segment alongwith Bajaj.
Bajaj Auto, which is also one of world's largest three-wheeler manufacturers, will bring its expertise in low-cost engineering to the table. The Pune-based company recently unveiled its indigenously developed ultra low-cost car LITE at the Auto Expo earlier this year.
When contacted, Rajiv Bajaj, managing director, Bajaj Auto, declined to offer any comments on the matter. There is, however, no confirmation if the low-cost car will make its way to India as Bajaj Auto has already signed an agreement with Renualt and Nissan to develop a 'ultra low cost' car for the Indian market, which will be retailed at $2,500-$3,000.
The KTM-Bajaj car will be a four-seater urban runabout, which is under KTM's new 'innovative urban transportation concept'. Such vehicles are cheap yet frugal and fun to drive. The scooter, however, will be made available in the Indian market and is already under development. A launch by 2010 launch is likely for the model.
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