These Rover-branded vehicles will be marketed through Rovers own dealer network in the UK and in continental Europe. Their choice of the Indica to fill a gap in their model range in order to address the high-volume small car segment is an affirmation of Tata Engineerings product development and manufacturing expertise. This agreement should see a substantial addition to the lifecycle volume of the Tata platform.

Says MG Rover chief executive Kevin Howe: This new car, which will fit perfectly into our existing product portfolio, will reach a whole new customer base. We are delighted to have concluded this manufacturing agreement with Tata Engineering. The Pune factory has state-of-the-art facilities and a highly skilled and dedicated workforce.

The Tata Indica, which has gone from strength to strength in the Indian market place over the past several months in the face of a stiff global competition, will continue to be marketed in parallel under Tata branding through its own European distribution channel.

Says Tata Engineering chairman Ratan Tata: This agreement will enhance the volume throughput of the Indica plant significantly. More importantly, we look at it as an endorsement by a major international company of Tata Engineerings capabilities in general, and the world-class acceptability of the Indica in particular.