Tata Motors sees increased sales to Rover

Tuesday, 01 February 2005, 20:30 IST
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MUMBAI: Tata Motors, one of India's top automobile makers, expects sales of its Indica hatchback cars to Britain's MG Rover to pick up in 2005 after the launch of its new product versions, reversing the sluggish trend of the past year. The company, an arm of diversified business house Tata Group that has presence in a wide spectrum of sectors such as steel, software, and finance, also sees overall exports rising significantly in 2005 on its foray into new markets. The deal between Tata Motors and MG Rover had come under a cloud in recent months after the British automobile firm was reported to have tied up with a Chinese company for sourcing of vehicles. "There has been a reaffirmation of the whole project. We have got the business plans finalised for this year," said V. Sumantran, executive director (passenger car business unit) of Tata Motors. "Sales had slackened in the past few months. It is now back on track and we expect the momentum to pick up in the months ahead," Sumantran told IANS at the company's headquarters Bombay House here. Tata Motors had entered into an agreement with MG Rover in December 2002 to export 100,000 units of the Indica car, which are sold as City Rover in Europe, over the next five years. Industry sources say Tata Motors, which is listed on the New York Stock Exchange, managed to sell over 6,000 units to MG Rover in 2004 as against a target of around 20,000. Sumantran said the sales of City Rover cars would gain momentum in the coming months with the launch of new product versions and entry into new markets in Europe. "We are focussed on the project and we have to see how we can strengthen it," said the official, adding that the company would begin exporting left hand drive and turbo charged versions of City Rover shortly. Tata Motors, India's largest truck and bus maker with a market share of over 60 percent, expanded into passenger cars in the late 1990s. It makes the City Rover at its plant in Pune. Besides Indica, the company makes the sedan Indigo and its estate version Indigo Marina as well as multi-utility vehicles like Safari and Sumo Victa. Enthused by the successful launch of its cars in South Africa in October last year, Sumantran said Tata Motors would aggressively scout for new export markets in the coming months as well as strengthen position in the existing locations. "We need to increase the footprint outside the country. We have decided to go to countries where we will have not marginal but meaningful presence," he said, adding that the company may foray into Turkey soon. Exports of Tata Motors' multi-utility vehicles was up 184 percent in the October-December quarterly period of the current fiscal year against a year-ago period, while other Tata-branded passenger vehicles' sales overseas rose 52 percent. Tata Motors' net profit in the October-December quarterly period jumped 50 percent over the year-ago period on increased vehicle sales. Net profit in the third quarter ended Dec 31, 2004, touched 3.16 billion ($72 billion) up from 2.11 billion logged in the October-December quarterly period of the previous fiscal year.
Source: IANS