The story of Jaguar Land Rover: It was a moment of personal triumph for Ratan Tata
The story of Jaguar Land Rover: Late Wednesday at the age of 86, Ratan Tata, businessman, philanthropist, and cherished national leader passed away. Rising in Indian and international corporate circles, he leaves behind a country in mourning and a war-chest full of lessons, notably the one regarding his purchase of Jaguar and Land Rover.
In March 2008 the automobile industry got up to pay attention to India.
Newspapers led the Tata Group’s projected $2.3 billion acquisition of Ford-owned British iconic brands Jaguar and Land Rover, beating out compatriots Mahindra and Mahindra as a new day broke in the United Kingdom and across the pond in the United States.
It was the “Neil Armstrong moment” in Indian automotive: “one small step for the Tatas, one giant leap for the country’s corporate brand”. Ratan Tata also had a personal success after rejection by the American brand in his attempt to sell a manufacturing facility.
#OnthisDay:-2008
Tata Motors completed the deal to acquire two luxury car brands Jaguar and Land Rover.
“The best revenge is massive success.”
~ Frank Sinatra.
The revenge story Of #Tata, especially #RatanTata Ji over Ford is truly the story of massive success too. @RNTata2000 pic.twitter.com/YCKW6EMR6E— Vedant Birla (@birla_vedant) June 2, 2022
The Tata Indica’s introduction starts the narrative in 1998.
Considered as India’s first indigenously designed and produced automobile, the Indica was also its first diesel-powered hatchback. It also resembled an automobile near Mr. Tata’s heart.
Though sales were low, a depressed Ratan Tata seeking to stop his losses came to the US to present the plant to then Ford CEO Bill Ford. The conference did not follow schedule.
Declaring the Indian business should never have begun producing automobiles and that purchasing the facility would be a “favour” to the Tatas, Mr Ford allegedly rebuked Mr Tata.
A “humiliated” person Ratan Tata sent back his offer to Ford and headed home with a very definite aim in mind: proving his skeptics and detractors wrong.
Nine years later – after turning the Indica into a success with European and African exports by 2004 and domestic sales topping at 1.42 lakh in 2007 – Mr Tata achieved just that.
By 2008 Ford was having trouble.
The crisis that tore apart the American economy paid its toll; in fact, the corporation was almost insolvent; had a government line of credit had not been possible, this would have changed everything.
Always alert, Ratan Tata moved quickly to grab Jaguar and Land Rover, driving Ford (claims) to admit the Indian corporation was acting in a “favour”.
Although Mr. Tata may have had some element of retribution in the bargain, it was also smart business.
Land Rover had recorded record sales in the last three years, while Jaguar—even if it was suffering then—is among the most exclusive and well-known sports and luxury automobile producers in the world.
This includes 2007/08 earnings of $1 billion.
“There is no reason to tinker with the brands… our challenge is to make them grow,” Mr Tata said at the Geneva Motor Show in Switzerland days after the purchase was announced.
And they grew, too. From £9,871 million in 2011 to over £25,000 million by 2018, JLR, or Jaguar Land Rover, sales surged. The business reported selling over four lakh automobiles in FY24.
Industrialist Vedant Birla wrote on X in June 2022, on the 14th anniversary of that historic event, the whole experience demonstrated to the world what resilience, hard effort, and dedication can produce.
“Tata entered the worldwide motor industry from there and has been a world player (since)……”
