Hero Group's Munjals tell Peugeot to hop in for new ride
Economics Times: Faburary 6,2008
NEW DELHI: The Delhi-based Munjal family, owner of the $4-billion Hero Group and promoters of the world’s largest two-wheeler brand Hero Honda, is negotiating with the euro 56-billion French car major PSA Peugeot Citroen for a possible alliance for passenger cars. The Munjals have already forayed into the commercial vehicle market by inking a joint venture with German heavyweight Daimler Truck to manufacture and market trucks and buses in India.
Speaking to ET, Hero Honda Motors MD & CEO Pawan Munjal said: “We have already announced our joint venture with Daimler for trucks and buses. Currently, we have no plans to venture into other four-wheelers. If some business opportunity comes to us, we will welcome it. As of now, we are concentrating on our core two-wheeler business.” A senior source, however, said the two companies had held talks in Paris last month.
According to sources in the automobile industry, the Munjals and Citroen have struck a natural chord as they share common interest in the 1.5-million plus Indian passenger car market. “The Hero Group has the largest distributor network with 2,500 points of sale and is the natural ally for PSA Peugeot Citroen, Europe’s second-largest car maker, which is looking to re-enter India with small cars and mid-segment sedans,” an industry source said.
