GB Auto says talks with Tata Motors ended

GB Auto, Egypt's biggest listed automobile assembler, said on Thursday it had ended talks with Tata Motors about selling the Indian group's vehicles in the Arab world's most populous market. 

GB Auto chairman and chief executive Raouf Ghabbour said "priorities differed" during the negotiations.

Tata Motors, India's largest truck and bus maker, said on Thursday it would raise prices of its vehicles starting January due to higher input costs.                                            

Egyptian automakers, most of which assemble foreign brands using imported parts, were hit hard by the global financial crisis last year. But sales are now growing at pre-crisis levels, helped by a government plan to offer affordable cars to taxi drivers.

GB Auto manufactures, assembles, imports and distributes vehicles for Bajaj Auto Ltd, Hyundai Motor Co, Mazda Motor Corp, Mitsubishi Motors Corp and Volvo AB.                                           

The company said in November third-quarter net profit rose 11.4% to 71.4 million Egyptian pounds ($12 million), bolstered by higher passenger car sales in its home market and in Iraq.