While Tata Motors is the most recognisable Indian partner of MG Rover, it is not the one most affected by the British car maker’s demise.
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That distinction goes to north India-based International Tractors, a manufacturer of farm tractors, which was venturing into passenger vehicles through a new venture – International Cars and Motors Ltd (ICML) – with technical support from MG Rover.
ICML was working on the development of a utility vehicle and had signed two joint ventures with MG Rover and Powertrain Ltd for the vehicle.
While MG Rover was supposed to develop the vehicle for ICML, Powertrain was to supply the Land Rover-derived L-series two-litre common rail diesel engine and transmission for the UV.
As part of the agreement, ICML was to manufacture the L-series diesel at its plant and was also to make many engine and transmission components for export back to MG Rover.
ICML has said that they won’t be affected by MG Rover’s circumstances as the technology for the UV had already been transferred.
Regarding the component supply agreement, ICML said development was in the early stages so it can be immediately stopped. However, the company will have to look at alternative sources for the further development of the UV and also a replacement for the L-series diesel.
Tata Motors had an initial agreement to supply 100,000 Indica-derived CityRovers to MG Rover over a period of five years.
However, thanks to the lukewarm buyer response to the CityRover, Tata’s exports for the last year were a little less than 4,000 units. With the supply agreement to MG Rover no longer in effect, Tata Motors will have to rely more on its own export network.
Apart from ICML and Tata Motors, MG Rover sourced small components from India and, at one time, even had a purchasing office in the country. However the office was closed some time back.
Perhaps the hardest hit will in fact be the small suppliers that sent minor parts to the company.
Deepesh Rathore / Tilak Swarup
