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Daimler out of race for India's Eicher stake

Business Materials 4 November 2007 14:26 (UTC +04:00)

Daimler has pulled out of the race for a stake in Indian bus and truck maker Eicher Motors Ltd, the Business Standard said on Sunday.

That has left Volvo, Renault, Mahindra International, a joint venture of Mahindra & Mahindra Ltd and Navistar's International Truck and Engine Corp, and "some other unidentified companies", it said.

"We were in talks with Eicher, but we are not looking at having any partnership. We are not interested in that company," the paper quoted a Daimler India executive as saying.

Eicher Motors has said it is evaluating partnership options.

Daimler, which recently began assembling some Actros trucks in India, has said it was very close to naming a local partner. It makes buses in India in partnership with Sutlej Motors Ltd.

Another newspaper on Friday had said Daimler was in talks with the Hero Group, which has a 26 percent stake in top motorcycle maker Hero Honda Motors Ltd.

Global truck makers are keen for a larger share of India's market, the fifth-biggest in the world, and expected to expand on improving infrastructure and new safety and emission rules.

Tata Motors Ltd has a dominant share of nearly 60 percent. Ashok Leyland Ltd, the No. 2 company, recently firmed up ventures for light trucks, engines and transmissions and technology with Nissan Motor Co.

Renault and Nissan are in talks with No. 2 motorcycle maker Bajaj Auto Ltd for a $3,000 car. Bajaj also plans to make commercial vehicles. ( Reuters )

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