Tata Motors going the Egypt way
GB Auto, is in talks with the Indian auto giant Tata Motors Ltd, for selling its automobiles in the Arab countries. As per the reports released on Thursday, Egypt's leading group in assembling automobiles, GB Auto, is bargaining with the wonder car marker of India, Tata Motors, to capture the popular Arab market by selling its vehicles.
Raouf Ghabbour, the CEO and Chairman, GB Automaker seemed confident and said that, the talks with the Indian auto giant is at the maturing level and soon there will be positive outcomes.
GB auto group, is known to agglomerate the international cars using parts which are imported. The company was hit by recession in the industry which it seems to be coping with now as the market is lifting from the crisis situation. There are schemes from government which is helping the auto market to recover, for instance offering reasonable automobiles to the taxi drivers.
The Egyptian auto mobile assembler, GB Auto, is into assembling, manufacturing, distributing and importing of vehicles for the big auto players such as Hyundai Motor Co., Mitsubishi Corp, Bajaj Auto Ltd, Mazda Motor Corp and Volvo AB.
As per Mr Gabbour, the company is planning to bunch up with auto mobile manufacturers, mainly from China and India.
From the company sources it was revealed on Monday that, GB auto's net profit saw a hike of 11.4 per cent in the first nine months on year-on-year basis which accounted to 71.4 million Egyptian pounds ($12.4 million). The company profits are credited to a considerable growth in the passenger car sales in Iraq and Egypt market.
In India, Tata Motors has recorded growth in its net profit in the first two quarter for the Fiscal year which was Rs 22.23 billion ($ 786 million) over that of the same period last year which was Rs 220 million.
Tata Motors is cementing its position in the international market, in which the biggest step it took was to acquire the British luxury brand JLR in 2008 and lifting the company from debts to a profitable venture. Now, the Indian based auto maker is planning to step in the premium luxury sedan segment to compete strong with its rivals who have already dominated the market. These include Honda Motors, Skoda Auto and Audi. It is speculated that the new sedan will be the most expensive model from Tata Motors and will be made from the experts from JLR. In a constant move to upgrade the company's portfolio in India, it also introduced the first crossover car in India, Tata Aria, last month, which is priced at around Rs 15.5 lacs.
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