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]

Honda currently has Activa model in the gearless scooter segment currently priced at Rs. 39,800. It launched the latest and upgraded model new Activa yesterday in India. The new scooter comes with new front and rear section. The new activa is powered by 109cc 4-stroke engine pumping out 8bhp at 7500rpm and 0.9Kgm at 5500rpm.

It has reduced tank capacity of 5.3 litre and sports a new braking system. The vehicle comes to complete halt even with one brake. This is good for those who are uncertain which brake to use to stop the vehicle completely. The CBS system applied front braking as well whenever the rear brake is applied. The new activa comes in two variants - Activa standard and Activa deluxe.

[Via: cartradeindia]