India’s Tata group is to set up a development centre in the UK Midlands to capitalise on new ideas in automotive engineering and technology in Europe.

When the centre is fully operational, it is expected to employ more than 1,000 people providing development expertise for the Tata conglomerate, which spans vehicles, steel and IT.

The £3.5m project near Coventry reinforces Tata’s commitment to the UK market following the collapse of a car distribution deal with Rover, the British carmaker, which went into receivership this year. It will initially have 50 to 150 workers.

Recruitment has begun for the centre, though a date has yet to be set for its opening.