‘Jaguar’ And ‘Land Rover’ Now An Indian Beast

Jaguar

Mar 27, 2008

“After I heard, late on Tuesday that Tata Motors has acquired Jaguar-Land Rover, I sent off 100 SMSs to my friends about how proud I felt that an Indian company has bought these two internationally-renowned brands. I am an automotive fan and I bought myself a Range Rover last December, knowing that Tata Motors was in the lead to buy the car company. I have booked the four-door Jaguar, which is scheduled for an end 2008, early 2009 launch and yes, I will be happier buying it since it will then be an Indian-owned brand,” Mr Deshpande said.

However, some market players are questioning the business logic. Some, who spoke on condition of anonymity, asked what was being acquired: a collector’s item or a business? “If it’s a business that is being acquired, then it should be profitable or have a reasonable chance of making a profit. Right now, it is a loss-making company and the New York Stock Exchange-listed Tata Motors is unlikely to have gone into the deal without having formulated a clear strategy for a turnaround.

Another senior auto industry executive, who didn’t want to be named said: “The change in the global perception regarding India that has happened in the past decade or so, has benefited Tatas. I was in Europe last week and when the topic turned to the Tata-Jaguar Land Rover deal, I mentioned that I had worked with the group earlier. There was a general recognition of the brand Tata and it was all positive,” he said.

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