The Delhi-based Munjal family, which owns the $4bn Hero Group behind the world’s largest two-wheeler brand, Hero Honda, is negotiating with PSA Peugeot Citroen over a possible alliance for passenger cars, an Indian newspaper said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Economic Times of India (ET) noted the Munjals have already agreed a joint venture with Daimler to manufacture and market trucks and buses in India.
Hero Honda Motors MD & CEO Pawan Munjal told ET: “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.”
But a senior source told the paper the two companies had held talks in Paris last month.
According to auto industry sources, the Munjals and Citroen have struck a chord as they share common interest in the 1.5m-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 told the Economic Times of India.
