Hoshiarpur-based Sonalika Group said it has acquired UK-based engine manufacturer, MG Rover, which could not survive the economic downturn and was forced to shut down its factory. “The agreement was a technical collaboration in which Rover was providing us the licence and patent to manufacture engines, and in return we were supposed to supply them 60,000 units engines per year from our factory in Hoshiarpur,” L D Mittal, chairman of Sonalika Group, said.

However, he said as Rover has gone bankrupt and shut down its plants, Sonalika is now manufacturing those engines on its own, with design, licence and patent provided by Rover as per the earlier agreement. Not divulging the amount involved in the acquisition, Mittal said, “We have got everything for almost free and all legal requirements have been made from both the companies and now we are manufacturing those engines in Hoshiarpur. plant.”

Its subsidiary, International Cars & Motor (ICML) will also launch a next generation sports utility vehicle (SUV) by mid 2010, in which the company will use this engine (Rover).

“This SUV will be one of its kind, which would be very cost effective in the premium range of such vehicles. What others are selling for around Rs 40 lakh, ours would cost only around Rs 16-17 lakh, with almost the same features like others have,” Mittal said.

When asked whether this Rover is the same company that was supplying engines to Jaguar Land Rover (JLR) before Tata Motors acquired the iconic brands, and whether Sonalika would supply to JLR, Mittal said, “I do not think so, as Tata-JLR has its own source.”

Spokesperson from Tata Motors said, “JLR has been sourcing engines from Ford since long and would continue doing that.”

The company would initially launch a diesel version of the SUV and then a petrol version would follow soon after that. At present, the company is selling its MUV, Rhino Rx with a monthly sale of around 250 units on an average (according to society of Indian automobile manufacturers) with 90 dealers across the country. It is also exporting to countries such as Sri Lanka, Nepal, Bangladesh, African markets and Brazil.