Case studies

Creating distribution agreements for Tata Motors

Tata Motors sells its vehicles and spare parts in Italy, Spain and Poland through its distributors. Models for this market include the Telcoline and Xenon pickup trucks, Safari SUV and the Indica and Indigo passenger cars.

We have helped Tata Motors draft and negotiate agreements appointing distributors in various countries including Italy, Spain and Turkey. In particular we have advised on compliance with EC competition law including the Motor Vehicle Block Exemption. The Block Exemption affects issues such as exclusivity and export bans.

Other key issues for negotiation included warranties, payment terms, marketing efforts by the distributor, technical support by Tata engineers, compliance with local laws and product liability. Careful consideration was given to the forecasting and ordering process and to the distributors' business plans.

On behalf of Tata Motors we instructed lawyers in the relevant countries to advise on local laws affecting the agreements. We managed the relationship between the foreign lawyers and Tata Motors, ensuring the local advice was applied to the documents effectively, and keeping Tata Motors informed throughout. Conference calls were an essential part of this, involving Tata Motors' in-house legal team in Mumbai, our lawyers in London and the selected lawyers on the continent.

We are pleased to be a part of Tata Motors' success in the European market.

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Penningtons Manches Cooper LLP

Penningtons Manches Cooper LLP is a limited liability partnership registered in England and Wales with registered number OC311575 and is authorised and regulated by the Solicitors Regulation Authority.

Penningtons Manches Cooper LLP