Tata Motors has revealed that it will be supplying around 1600 cars (comprising of Indica’s and Indigo’s) along with 100 Sumo Grande’s and 50 Safari’s to the organisers of the Commonwealth Games. These vehicles will be used by the organisers to ferry athletes from their hotel rooms to the stadiums and vice versa. Tata Motors will be supplying around 1800 vehicles from its factory as a part of a unique agreement akin to a traditional barter system of dealing. According to the terms of the agreement, the vehicles will be provided by Tata Motor’s during the duration of the Commonwealth Games in return of advertisements crediting them as logistics solutions providers for the 12 day sporting event.
The agreement also states that Tata Motors would take back all the vehicles provided by them, post the closing of the sporting event. The vehicles will then be sold off through ‘Tata Motor’s Assured’ which is the manufacturer’s used-car business arm. The brand new vehicles will cost the company around Rs.150 crores and are likely to depreciate in value by around 20% before being sold. This means that the actual cost incurred by Tata Motor’s for the tag of Logistic Sponsors will be around Rs.30 crores. It will also get enough publicity owing to the advertisements.
A Tata Motor’s spokesperson told the media that the company is supplying these vehicles for advertisement benefits and would not like to disclose the commercial implication of the entire deal. Currently, the company is also providing transport for the ongoing country-wide Queen’s Baton Relay by supplying its flagship vehicle Land Rover Discovery 4 SUV along with a few Sumo Grande’s.