Tata Engineering (Telco), the country’s largest truck maker, said on Tuesday it has struck a distribution agreement with Phoenix Venture Holdings (PVH), owners of the MG Rover Group, to sell its Safari off-roader (four-wheel drive) and Loadbeta pick-up trucks in the UK and Ireland.

Telco, which has a manufacturing pact with the UK-based automobile major to roll out the Indica incorporating Rover-specific modifications for the UK market, now plans to raise exports of its sports utility vehicle Safari and pick-up trucks via the deal.

The franchise will be managed by Phoenix Distribution, a newly-floated subsidiary of Phoenix Venture Holdings, which will replace MVI, the earlier distributor for Telco in the UK and Ireland.

"The sale of Tata products through Phoenix Distribution with its reach and professional pedigree is another expression of the Tatas’ commitment to building long-term brand presence in the UK and Irish markets and ensuring the satisfaction of both current and future Tata consumers," says
V Sumantran, executive director (passenger cars) of Telco.

Telco now sells around 1,000 units of the Safari and pick-up trucks in the UK and Ireland and plans to double volumes through the new distribution arrangement, which will come into effect "in the next few months."

"New upgraded versions of these vehicles with contemporary features will further enhance the value proposition of these vehicles. The vehicles will be distributed through a selection of both MG Rover and former Tata dealerships," Telco has said.

"We are delighted to co-operate with the Tatas on the sales of these vehicles. We are able to assist the Tatas with our experience and knowledge of these markets, and our understanding of what customers will expect from such products," said PVH group chief executive Kevin Howe.

Telco expects the Rover-branded Indicas to make its debut in UK during the second half of the current fiscal. The deal involves exporting 1.5 lakh units of the Indica over five years. The two companies are now looking at strengthening the tie-up and plans are on the anvil to market high-end Rover cars in India.

During the current fiscal (April-February ‘03), the Indica notched up volumes of 64,310 units, recording a 16.4% growth, while the cumulative sales of the Indigo, the latest mid-sized offering from Telco, was pegged at 4,384 units.