Tata Motors gets barter sponsorship for Commonwealth Games
India's leading car maker Tata Motors will be providing as many as 1,800 units of its new cars to the organizers of upcoming Commonwealth Games in the National Capital. The company has managed to seize a barter sponsorship deal wherein it will provide its vehicles to ferry athletes during the 12-day-event along with promoting its brand as a logistics solutions sponsor.
As revealed by the organising committee of the upcoming Commonwealth Games, other contenders who were in the race of getting the barter sponsorship included Maruti Suzuki, Mahindra Mahindra and Toyota Kirloskar.
The company will be providing these new vehicle in exchange for its association with this international event and will take back the cars after the event. According to industry sources, the supply of these new cars may cost as much as Rs 140-150 crore to the company. however, the high cost will be compensated by re-selling these cars through Tata's used car outlets, after taking them back from the government. According to an estimate, getting the logistics sponsorship will ultimately cost about Rs 30 crore to the company as once taken back, the cars will be sold at around 20 percent depreciation.
The cars which will be supplied include 1,600 units of its compact cars like Tata Indica and Tata Indigo, 150 units of its SUV's such as Tata Sumo Grande and Tata Safaris, 20 units of Tata Wingers and 30 units of its commercial trucks
Moreover, the company has recently managed to struck the sponsorship for providing complete transport solution to the ongoing Queen’s Baton Relay in which it will be supplying its popular SUV's like Land Rover Discovery 4 and Sumo Grande.