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From Nano to Jaguar & Land Rover, TATA has it all

Thu, Mar 27, 2008

International, National, News

NANO

On 26 of March came the news which we all were anticipating and were very eager to hear about.

TATA motors has finally,officially,bagged the two coveted luxury brand, Jaguar and Land Rover. Ford and TATA motors closed the deal at $2.3 billion. TATA can now boast of having the ultimate spectrum (in terms of prices) as they are going to be the makers of the world’s cheapest car NANO ( Nano :TATA Motors’s Rs 1 Lac($2,500) car) ,and, Jaguar and Land Rover being the costly mean dream machines.
The acquisition of JLR will put TATA strongly on the global scene. TATA already became a well known name in automative market when they showcased the cute NANO, the $2500 car, doing something which( making a car in $2500) was considered to be impossible and was termed as un-doable by many. Now after having JLR in their kitty they will be taken much more seriously and respectfully. Also it will be a good opportunity for the Indian car maker to look into the advance engines of the new sophisticated cars and learn from their designs.

But what effect will it put on TATA motors, finacially?

At $2.3 billion, the deal amounts to ~32% of TATA Motors annual sales of $7.2 billion last year. So the deal is bound to make an impact.Also,not to forget, the two brands TATA got are already running into loss. TATA will raise a loan amount of $3 billion from a consortium of banks led by SBI to fund the deal. But due the the international liquidity crises and increased interest rate, they will have to pay back more.

Hope this does not turn out to be a bad deal for TATA and its worth the effort!

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12 Comments For This Post

  1. Allsace PSX Says:

    Sadly, getting rich by reprocessing junk for a genuinely poverty striken and overpopulated market like India is in no way going to help sales of Jaguars and Range Rovers throughout the planet. We can all effectually regard these two brands as having been permanantly dissolved. They are now headed into history. Anyone who thinks otherwise is having a fantasy spell and we all know it.

  2. Mayank Says:

    I dont know why people in the west cant digest the rise of India.
    Poverty striken?India is a developing antion with growth rate of ~8.5%! Soon it will be all over you.
    TATA did something which all advanced car makers from the west said was impossible,make a respectable car in $2,500!
    Thats commendable.So go and bang your head on your door while India Inc overtakes…

  3. Used Jaguar Parts Says:

    TATA better hope this deal goes smoothly for them, or it may be over.

  4. NanoCars Says:

    I feel that the car is not bad for the price it is being offered!!

  5. Willy Vona Says:

    If you have a mechanic in your family, or someone who knows about cars, Take them with you. Test the car. Look for a mileage under 100,000. Look under the hood. Try to get a warranty in case anything messes up. When you test drive the car, keep the radio off, listen for Anything that just doesnt sound normal. Make sure the air and heat work good.

  6. David Says:

    TATA motors have clever managers, 2.3 Billion is big amount, they have already invest money in new cars.. Experts thinks TATA’s profit in 2013 will be about 10 billion dollar..

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  1. » From Nano to Jaguar & Land Rover, TATA has it all Says:

    [...] Peter wrote an interesting post today onHere’s a quick excerptFord and TATA motors closed the deal at $2.3 billion from Ford. TATA can now boast of having the ultimate spectrum (in terms of prices) as they are going to be the makers of the world’s cheapest car NANO ( Nano :TATA Motors’s Rs 1 … [...]