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by Robert Lewis (06 Sep 03) It follows on from the recent announcement that what amounts to the replacement for the Metro, marking MG Rover's return to the small car sector in which it hasn't been represented for several years, will be the CityRover version of the Indica, built by Tata at Pune, the Indian city formerly known here as Poona. Re-engineered for UK customers though it may be, the CityRover remains an Indian product, with engines shipped in by Tata's familiar supplier Peugeot. Tata's reach goes far beyond the sub-continent, because its 85 individual companies have more than 218,000 employees in 100 countries across the world. On home ground, its revenues account for something like 6% of all India's exports. In time for the Phoenix and MG Rover deals, its vehicle division - previously the Tata Engineering and Locomotive Company, otherwise Telco - has just been renamed Tata Motors Limited. But the group also has longer-established joint ventures with the likes of Honda and DaimlerChrysler. In addition to its own-badge vehicles, it assembles Honda cars, as well as Mercedes-Benz cars and commercials. Production of an Indian-built Mercedes E220 started in 1995. Pick An International Name Add Tata Burroughs, Tata Honeywell, Tata Cummins and the company's controlling interest in Hughes Telecom (India), and it becomes very clear that it's a major player in all manner of industries. Others vary widely, from hydro-electric power generation, and iron and steel production, to soaps, cosmetics, detergents, cooking oils and tea. Tata Findlay was founded in 1962 as the owner of 53 tea estates, and three years ago the parent company took over the Tetley Group, in the first Indian buy-out of a truly international brand. And Tata BP Solar was established earlier this year.
Going back to the vehicles, didn't we already have an importer of Tata commercials and 4x4s in the UK? Indeed we did. As of spring 2000 they were being handled by Bridlington-based Motor Vehicle Industries, previously the Lada importer. That arrangement petered out, and Phoenix will have to re-establish a make which has been quite a while out of the public eye. It's talking about a network of around 50 dealerships, independently managed but with the backing of Phoenix Venture Holdings - in other words, MG Rover. Wholesale and retail finance will be available via the HBOS Group. Just what promotional activities will be put in place hasn't been announced yet. Maybe some motorsport involvement? You never know. Tata sponsored Narain Karthikeyan in the British Formula 3 Championship. |
The announcement that sales of Tata 4x4s and commercials in the UK are to be taken over by the newly created Phoenix Distribution Limited links MG Rover even more closely with the massive Tata Group, the biggest industrial conglomerate in India.
Tata tracks its history back to a private trading company founded in 1868 by the original Mr Tata. In 1902 it opened the first Indian-owned luxury hotel, in Bombay, and another 30 years on founded Tata Airlines, which developed into Air India. So there isn't much it doesn't know about how to operate a business with very varied interests.
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