Powertrain Limited, a subsidiary of Phoenix Venture Holdings - owner of MG Rover - based at Longbridge, Birmingham (UK), has announced the appointment of Sonalika Group as a new supply chain partner to its forward common rail diesel powertrain programmes currently under development.

The long-term collaboration supply contract signed today in New Delhi India provides for Sonalika to manufacture a range of powertrain components.

Powertrain Ltd will build complete engines for its current and future customer base and Sonalika has been granted a manufacturing licence to build the engine for their Indian markets. In addition the two companies will work together to develop further international business opportunities to sell the powertrain manufactured by Sonalika and Powertrain Ltd in international markets.

Sonalika has been selected as part of Powertrain Ltd's global sourcing strategy based on securing the best cost and quality levels for its products.

Fraser Welford-Winton, managing director of Powertrain Ltd, said, "Sonalika are experienced in working with European companies and operating to global quality and cost targets. In addition the cultures and size of the two companies are very compatible making this a win win situation."

Powertrain Ltd has a customer base that includes MG, Rover, Land Rover, Lotus, and Caterham.