PROTON TEAM TO VISIT INDIA TO FINALISE JOINT VENTURE WITH HERO

By P. Vijian

NEW DELHI, Oct 10 (Bernama) -- A delegation from Proton Holdings Bhd is
expected to arrive here later this month to finalise plans to form a joint
venture with Hero Group.

The Economic Times in Saturday's front-page "Hero chases small car dream
with Proton" said that Proton and Hero Group were in the final stage of
negotiations.

Hero Group's top executives, according to the newspaper, had visited
Proton's Shah Alam and Tanjung Malim plants and its car design subsidiary, Lotus
in the United Kingdom.

Sunil Kant Munjal, chairman of Hero Corporate Service Ltd, told the
newspaper: "Proton came and met us earlier and there's nothing more to add."

The tie-up would enable Hero Group, a family owned company that started off
producing bicycle components in early 1940s, to enter the robust Indian
passenger car market, which sold 1.5 million vehicles last year.

Proton had been critically exploring the Indian motor vehicle sector for
some years and had talks with leading Indian players like Mahindra and Mahindra,
Ambassador, Hindustan Motors, Sonalika's International Car and Motors Ltd and
Argentum Motors.

More interaction between both parties is in the pipeline when International
Trade and Industry Minister Mustapa Mohamed visit India later this month.

The US$4 billion Hero Group is owned by Delhi-based Munjal family.

In the past, the Indian company had also explored joint venture
possibilities with French carmaker Peugeot-Citroen and Germany's Volkswagen, to
manufacture cars for the Indian market, said the paper.
-- BERNAMA