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.
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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.
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By GlobalData“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.
