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MG Rover, Tata Motors roll out CityRover for European market
Financial Express — September 17, 2003

Pune: The wheel has turned full circle. In what can be termed as a landmark development in the country’s indigenous automobile industry, MG Rover Group in association with Tata Motors has rolled out its first batch of CityRover for the European market. This “Made in India” tagged car is expected to hit the road in November this year. 

V Sumantran, executive director, Tata Motors, handed over the first CityRover to Kevin Howe, chief executive officer, MG Rover Group, at the ceremonial roll-out of the first CityRover off the assembly-line at the Tata Motors plant in Pune on Tuesday. The duo are already talking of their next collaborations and indicated this is only the beginning without divulging any future programme details. 

Mr Howe said, “In order to effectively meet the market requirements of the United Kingdom, we felt the need to introduce a small car which would target the ‘city car’ sector. Tata Indica is a product of international standards that fits in perfectly with our requirement as the basis for the CityRover. The CityRover will help us open a new customer segment in the highly competitive UK market.” 

Mr Howe said that this segment was not particularly brand loyal and was looking for good value. There is a shift towards small car in the market which augurs well for the car, he added. As of now there will only be a petrol version but diesel version will be the next on the cards as and when it is able to meet the new Euro III emissions norms. 

He added, “As per our agreement with Tata Motors, we have a contractual obligation to sell 1,00,000 units in next five years. I believe that our association with Tata Group will help in raising the awareness of the Tata brand and Tata products in the European markets.” 

The ‘city car’ sector positioning provides the most competitive value for money blend of space, performance and specification. The car will be sold in the price band of ś6,500 to ś8,500. 
As per his estimates, the ‘city car’ sector of the overall European small car market accounted for 1.5 million units annually. 

V Sumantran, executive director, Tata Motors, said, “The CityRover retains all the attributes of the Indica which have made it one of India’s biggest successes, while introducing into the car characteristics which are unique to Rover and, therefore, suited to that brand and the driving environment in the UK and Europe.” 

The agreement between Tata Motors and MG Rover was inked in December 2002. Speaking at that occasion, Ratan Tata, chairman, Tata group, said, “This agreement will enhance the volume throughput of the Indica plant significantly."

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