Close on the heels of announcing a mega alliance with Fiat, Tata Motors plans to set up a technical centre in the UK to develop passenger cars.
Sources close to the development said other Tata group companies would also join Tata Motors in the project, which would eventually look after R&D, designing and software development for passenger cars.
When contacted, a Tata Motors spokesperson said, "The company is considering setting up a technical centre in the UK which, we hope, will attract some of the best expertise in Europe to support our passenger car development and engineering plans."
However, he declined to divulge the amount of fund the company would put in the centre, saying that the details were still being worked out.
Asked if other Tata group companies would join the project, the spokesperson said, "It is possible that in the course of time our group companies like Tata Technologies and TCS may join the centre for their requirements."
Sources close to the development said TCS would employ at least 700 people to work in this project, the first of its kind by any Indian automobile company.
Auto experts said the proposed move was in line with the company's plan to emerge as a collaborative automaker from the traditional hierarchical model.
"Tata Motors has adopted a policy of management of the development of new products and not trying to develop everything in-house. The proposed technical centre in the UK is yet another instance of the company's collaborative approach," they added.
According to them, the collaborative approach has started yielding results to the company. Nearly 80 per cent of Ace, the only mini truck in the world, is outsourced.
The 0.75 tonne truck is now available in only five states of India and already sells 35,000.