Tata Motors and MG Rover Group have foiled pundits' predictions by deciding to continue their joint venture commitment for CityRover cars, according to a statement cited by Reuters.

The news agency noted that MG Rover signed an agreement in December 2002 with Tata Motors to buy 100,000 Indica hatchbacks - called the CityRover in the UK - over five years to sell in Europe, but Tata had said earlier this month the deal could dissolve if MG went ahead with a proposed Chinese venture.

The statement reportedly said the CityRover project will gather momentum with the launch of new products and entry into new markets - the decision was taken after the annual business plan review.

According to Reuters, the two companies announced plans to launch left-hand drive versions of the CityRover that will form the basis of entry into Europe and have agreed on the potential inclusion of the turbo-diesel version of the car.

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