Tata Motors Case Study

1250 Words5 Pages
INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses. In this paper, we analyze the factors for acquisitions, business environment during the deal and intercultural aspects in detail. COMPANY BRIEF Tata Motors: TATA Motors is the largest manufacturer of automobiles in India with revenues over US$ 38.9 billion. TATA Motors is a subsidiary of TATA Group, India’s biggest industrial conglomerate. Before the deal, TATA Motors was the leading manufacturer of commercial vehicles and small cars in India. The company was established in 1945 as a family business and also owns the world’s cheapest car Nano . Prior to 2008, the company had limited global footprint and almost negligible presence in luxury car segments. Tata Motors also launched India’s first Sports Utility Vehicle (SUV) in 1991 and India’s first fully indigenous passenger car, the Tata Indica, in 1998. TATA Motors is also listed on the New York Stock Exchange (NYSE) starting September 2004. Jaguar Land Rover: Jaguar and Land Rover were the two marquee brands of US based