Ever heard of Tata Motors and wondered who they were? Well they are part of a 100 billion dollar company named ‘Tata Group’ which was founded in 1868 by Jamsetji Tata.
Tata Motors is India’s largest automobile company which has operations in the UK, South Korea, Spain, Indonesia, Thailand and South Africa. You may be wondering how this is relevant to Jaguar Land Rover, however in 2008, ‘Ford’ had to sell Land Rover after being unable to make profit. Therefore after ten months of negotiations, Tata Motors made the deal and Jaguar Land Rover was bought for £1.15 billion.
The journey of Tata Motors has been quite an impressive one to date, with car sales in 2009 taking a huge downwards spiral, this meant Land Rover was forced to request state loan guarantees from Lord Mandelson and then the Business Secretary. However luckily for Tata they walked away from negotiations once the Government had demanded to have control over the company’s strategy. It turned out to be the best decision for Land Rover as since then Jaguar Land Rover has completely flourished in the industry, managing to secure £500m in commercial funding. A huge positive for the Midlands especially was when the plans were disregarded to get rid of the Jaguar Land Rover plant they have. This was due to the increasing rise in sales around the world for Jaguar Land Rover. So when it came to 2010 for Tata Motors they had managed to get the sales of Jaguar Land Rover cars rise 11pc to 63,155, this was especially strong in countries like China, North America and Russia.
So the answer on whether Tata Motors have managed to make a success out of Jaguar Land Rover…is yes. The gamble on a slowly struggling company turned into a great success for Tata Motors who are now have a net income of £1.3 billion.