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Tata Motors in talks with Canada's Magna
Tata Motors is in preliminary discussions with Canada-based Magna International, one of the top five automotive component suppliers in the world, for contract manufacture of its much-awaited Rs 1-lakh car.
Tata Motors is in preliminary discussions with Canada-based Magna International, one of the top five automotive component suppliers in the world, for contract manufacture of its much-awaited Rs 1-lakh car.
This has been revealed by sources involved in the negotiations between the two sides.
If the deal goes through, Magna will make the Rs 1-lakh car at many satellite manufacturing plants that will be set up for the purpose, said an official with one of the companies.
In the global automotive industry, contract manufacturing is usually undertaken for specific models that are low in volumes and thus not economically viable for an auto major to manufacture. With respect to the Rs 1-lakh car though, the overall volumes will be large while the satellite plants will have limited production capacities individually.
If the deal goes through, Magna will make the Rs 1-lakh car at many satellite manufacturing plants that will be set up for the purpose, said an official with one of the companies. 
