Mumbai, April 9
TATA Motors on Saturday said that it did not expect any significant impact to its business from the emergent crisis at MG Rover.
On Thursday, MG Rover which has a contract with Tata Motors to source City Rover cars for the British market had halted production. Component suppliers had demanded `cash on delivery' payment from the company, which is in dire straits after a promised investment deal by China's Shanghai Automotive Industry Corporation came to nothing.
In an official statement, Tata Motors said, "there have been numerous queries to Tata Motors arising from media reports on the situation at MG Rover. Tata Motors continues to study developments and expects a clearer picture to emerge over the next few days.''
"Given the volumes of the domestic and growing international business, the temporary disruption of exports to the UK is not expected to have any significant impact. Tata Motors remains committed to the UK market and the support of customers there.''
According to the statement, City Rover volumes in financial year 2004-05 amounted to just 0.5 per cent of Tata Motors' total volumes of 3,99,566 vehicles. It had exports of 30,496 units.