Hero Motors in talks with German firm for manufacture of 2-seater sports plane
28 Aug 2008
New Delhi: Indian automotive major, Hero Motors Ltd has said it is in talks with a German firm for the manufacture of a sports bi-plane. The two-seater, according to company officials, will be manufactured at a plant to be set up at a special economic zone (SEZ) that the company wants to establish at a site - as yet undisclosed - in the state of Madhya Pradesh.
The joint venture with the German firm will mark the Hero Group's expansion into aerospace and defence-related manufacturing. Hero Aviation Pvt Ltd, a unit of Hero Motors, will partner the German firm in the proposed joint venture.
Hero Motors is India's biggest manufacturer of motorcycles.
According to company officials, the proposed 300-acre SEZ, in Madhya Pradesh, will also allow international defence companies to set up shop and take advantage of tax breaks.
According to company officials, the deal with the German company is likely to be firmed up, and signed, by the end of next month. They have yet to disclose the identity of the German partner.
According to industry analysts, in terms of aircraft ownership such an aircraft could mark the beginning of a new era in the country in aspirational terms, as it would very likely be priced in the range of Rs10-16 lakh.
