Tata Motors scrip loses in Rover tussle

DALAL STREET SPIKES

The market reacted negatively to reports that Tata Motors may snap its ties with Britain's MG Rover. The Tata Motors counter fell to an intra-day low of 482 before closing at Rs 483.25, down 1.98 per cent from Tuesday's close.

More than 8.36 lakh shares were traded on the BSE. Tata Motors said on Wednesday that its deal to sell Indica cars to Britain's MG Rover could come unstuck if Rover goes ahead with a proposed Chinese venture.

Players said that MG Rover group signed an agreement with Tata Motors in end 2002, to buy 1 lakh Indica cars over five years to sell in the European market.

But in September this year, Tata Motors reportedly admitted that demand for the Indica, or CityRover in the UK, was less than expected.