According
to a report in the Financial Times, the relationship between MG Rover
and Tata Motors, India's second largest car manufacturer, have reached
a low ebb following the dire sales performance of the Rover-branded Tata
in the UK.
Having geared up to sell 100,000 Tata Indicas, which are
renamed the CityRover in Europe, the sales to date have amounted to no
more than 3,000 in the few months it has been on sale. Unfortunately for
Tata, the cars that have been made for Rover cannot be re-directed to
the marker in India as they sport a number of features that are unique
to MG Rover, leading to a build-up of export inventory. Sales have not
lived up to forecast because the CityRover has been criticised for its
poor quality as well as being too expensive.
The two companies are currently meeting in Mumbai to address these issues
and to see whether there can be a long-term solution for future products.
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