Sweet Revenge Of Tata Motors

image courtesy : livelaw.in


Automobile industry history in India can’t be completed without Tata Motors. The largest automotive manufacturer in India. Started in 1945, 74 years of history now reached industries like telecom, electronics, IT, steel, construction machinery and many more. Like any others Tata also faced crisis, humiliation and losses. One of the interesting humiliating story of Ratan Tata and his team is here, and after 9 years how he took his sweet revenge.

 Tata had made their place in the heavy vehicle industry earlier. In 1998, Ratan Tata and his team started the passenger car division of Tata Motors. The first car was the Tata Indica a family hatchback, couldn’t make success in the market on it’s starting years. Many people told Ratan Tata to sell the division and he decided to sell it. He approached the American giant Ford to sell his company and they also showed interest too. In 1999, Ratan Tata and his officials went to Detroit to make deal with Ford. After 3 hours of meeting Ford officials started to humiliate Tata group. They said “You don’t know anything, why did you started the passenger car division at all”. They said, they will do a favour by buying the passenger car division. Ratan Tata and his officials came back to India without making the deal but humiliated.

Tata focused on their passenger car division and soon Tata Indica become a success in the market. Indica had excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industries. Tata Motors also successfully exported large numbers of the car to South Africa. After that Tata produced so many passenger cars. . The success of the Indica played a key role in the growth of Tata Motors. In 2004, Tata Motors acquired Daewoo’s South Korea based truck manufacturing unit, and later named Tata Daewoo. In 2006, Tata formed a joint venture with Marcopolo, Brazil based bus and coach manufacturer.

In 2008, Ford faced bankruptcy after the Global Financial meltdown. And so, Ford decided to sell their luxury car brand the mighty Jaguar Land-Rover. Ratan Tata took this opportunity and decided to buy JLR. After 9 years of that humiliating incident Ford officials arrived at Mumbai, Tata headquarters to make a deal with Tata. The deal was made for $2.3 Billion, about 9300 crore Indian rupees. After the deal Ford CEO Bill Ford said “you are doing us a favour by buying Jaguar Land-Rover”.

Few years after the buyout, JLR is back to it’s glory and one of the mainstay of Tata Motors financial. That’s how Ratan Tata took sweet revenge on the American giant. 

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