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Old world charms come together to create new history

The lengthy and unique buyout of Jaguar and Land Rover are finally over. The take over was spread over across several months and felt like a never ending story. But there are two things that stand out. Jaguar is the ultimate society statement in Britain. It has long been a priced possession of the British snobbery for several decades. It has been the first choice of British Prime Minister’s who looked for ‘very British cars’. Hence they have been associated with luxury and old world charm from a long time.

Similarly, Land Rover, the first SUV, the world ever saw has been associated with British peace keeping missions in several exotic places for a long time. It was born soon after the WW II. The SUV was made by aluminum, which was available in plenty after the Great War. At least three fourth of the Land Rovers manufactured then are still available in used car market. They still carry a high re-sale value.

Jaguar and Land Rover has outlived their memory of old world in modern times. The iconic British brands Jaguar and Land Rover have been running under losses from the last decade and half. In the last five years, the sales have fallen by half. Despite losses, the brands have managed to preserve their luxury quotient.

The two names have now been jelled with the Tata’s, which are the original high society of India. Tata has been long associated the original big names in industries in India. Tata was also born around the time of the two world wars. Tata’s have been held in high regard through out their history. It is in fact an icon of Indian best business ethic.

However, Europe has largely regarded Indian business as neighborhood corner provision stores, with hard working people and of the Information Technology. All this has been shaped by the British impression of Indians in West. Interestingly, it was Tata which first broke the myth after it acquired the British high tea company Tetley tea and luxury hotel Boston Ritz and Anglo-Dutch steel maker Corus at an unbelievable price, created a stir in British business houses. All these created a stir for some time, but failed to make an impact of the rising Indian business power.

But with Jaguar and Land Rover acquisition it has hit at the heart of industrialized Britain Ratan Tata has had to re-affirm that he will preserve their identities and build on their heritage. Even while Tata has committed to keep their brand as alive as ever, it is still business and the company will have to create new avenues for profits for them. After all, Tata has crossed a thin line from third world countries and moved to highly regarded businesses. It will have to generate goodwill towards its products, without tampering with their identities.

But after this take over Tata has its work cut out. Since Indians in India will not buy Jaguars in large numbers, it will still be competing with luxury brands such as Mercedes, BMW and Audi and Aston Martins of the world. All these names are bigger and better managed than Jaguar and Land Rover. Tata’s biggest challenge lies now in managing the two companies and also run profitably.

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