IndiBlog

The much anticipated acquisition of two of Britain’s most famous car marques, Jaguar and Land Rover, by India's flagship TATA group has now become a reality.

TATA Motors, the automotive division of the TATA group bought UK-based Jaguar and Land Rover for $2.3 billion from Ford Motors. Jaguar, a byword for premium motoring, and Land Rover, famous for its off-roaders will now be part of an Indian company, which plans to roll out the world's cheapest car – Nano - by 2008-end.

Jaguar was founded in 1922 and is in the premium up market league in Europe and America, though the last decade has seen Jaguar losing its market share alarmingly. The first Land Rover was designed in 1948 and the brand is synonymous with commercial off-road vehicles.

“We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.” said Ratan Tata, the much admired Chairman of the TATA conglomerate.

The TATA's have huge challenges ahead though. While Land Rover has performed well of late, Jaguar has made losses ever since Ford bought it in 1989. It also faces intense competition from BMW, Mercedes, Audi, Ferrari and Lexus.

The TATA’s automotive group, which was traditionally into trucks/heavy vehicles business, entered the passenger car segment a decade ago with the launch of its indigenously designed Indica car. This acquisition will help the company leapfrog its technology, thanks to an agreement with Ford. Under the agreement, Ford will continue to supply components to Jaguar/Land Rover for the next 3 years. Ford will also assist TATA Motors with research, R&D and accounting activities.

As Indians, we all can feel proud of this historic deal and wish TATA Motors a great future ahead. It’s only an irony that the perceived land of “snake charmers” has bought into its ex-Colonizer. This also goes on to prove India’s new found economic power and dominance in the new world order! Jai Hind!