Tata Motors in barter deal for Commonwealth Games

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Old 28-Jul-2010
Tata Motors in barter deal for Commonwealth Games

NEW DELHI: Tata Motors, India’s largest auto maker, has struck a barter sponsorship deal wherein it will provide as many as 1,800 new cars to the organisers of Commonwealth Games to ferry athletes in lieu of its advertisements as a logistics solutions sponsor for the 12-day sporting event.

According to the unique arrangement with the Commonwealth Games Committee, Tata Motors would provide these vehicles in exchange for association with the event and will take them back after the event.

The cost of these vehicles is expected to in the range of `140-150 crore. However, they will be sold after the sporting event through its used-car business ‘Tata Motors Assured’. The value of the nearly fresh vehicles may depreciate by around 20%, which means that Tata Motors is getting the logistics sponsors rights for around `30 crore.

Tata Motors refused to comment on the broader contours of the deal: “We are supplying these vehicles for advertisement benefits and would not like to disclose the commercial implication of the entire deal,” its spokesman said.

Tata Motors will supply 1,600 cars (Indica and Indigo) besides 100 Sumo Grandes and 50 Safaris from its SUV stable. It will also supply 20 Wingers and 30 trucks for the movement of players and organisers.

The company is also providing complete transport solution to the ongoing Queen’s Baton Relay, with its flagship SUV Land Rover Discovery 4, Sumo Grandes and other vehicles being utilised for the country-wide event.

Other auto companies like Maruti Suzuki, Mahindra & Mahindra and Toyota Kirloskar were also in the fray to supply vehicles during the Commonwealth Games but failed to get any supply contracts, as per the spokesman of the organising committee.

Meanwhile, luxury car maker Mercedes-Benz is also expected to provide around 50 vehicles, a mix of sedans and SUVs, for the Games that would be utilised for the movement of dignitaries and other important functionaries. The deal is yet to be finalised and company executives said they are evaluating the options.

“The exact quantum of the deal would be determined by the class of vehicles that would be taken by the organisers. A final decision on the deal has not been taken yet,” a senior Mercedes-Benz India executive said.

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