The recent decision of the Indian government to defer the approval to a proposal by Daimler, a German auto-maker, for a joint venture to build and sell commercial vehicles in India may cause a hold-up in Daimler’s plans to expand and explore new vehicle segments.
The proposal quoted that Daimler would have a 60 percent stake in the Joint Venture (JV). However, before the proposal, Daimler had hinted that it would enter this venture with the Honda Group, but the proposal didn’t give any detail about the domestic partner in India. These may well be the reasons for the proposal’s hold-up.
Daimler came to India as DaimlerChrysler India Private Ltd. with the aim to cater to the Indian customer’s demand for luxury cars. Following DaimlerChrysler's corporate philosophy, Mercedes-Benz India Limited was rechristened to DaimlerChrysler India Private Ltd. Daimler wants to tighten its hold on the Indian auto market with a leap into the commercial vehicles segment. Regardless of the government’s decision, Daimler has decided to continue its commercial vehicles JV project and hopes that the government will give its proposal the “nod” in the first quarter.
DaimlerChrysler India is a complete subsidiary of the DaimlerChrysler group and one of the first auto joint ventures that was set up in India.