In the words of Frank Sinatra, “The best revenge is massive success.” This saying rings especially true for Ratan Tata, the man who orchestrated one of the most stunning comebacks in Indian industrial history.
It all started in 1998 when Tata Motors, then known as Tata Engineering and Locomotive Co, rolled out its first-ever car, the Indica.
It was a milestone moment—a homegrown, indigenously designed and manufactured vehicle from Indian soil. Ratan Tata, with his heart and soul in the project, even drove the first Indica off the assembly line himself. His dream was to make a mark in a market dominated by Japanese and American carmakers.
The infamous Tata-Ford showdown
However, dreams don’t always take flight without turbulence. Indica failed to capture the public’s fancy, and Tata Motors faced massive financial setbacks. Disheartened, Tata considered selling the car business. In 1999, he flew to Detroit to meet Bill Ford, the chairman of Ford Motors, to discuss a possible sale.
What happened next could be described as adding insult to injury. Praveen Kadle, a senior executive who was part of Tata’s team, recounted the humiliating experience in a 2015 interview. As per Kadle, Ford reportedly belittled Tata during the meeting, saying he had no business making cars in the first place.
“You do not know anything about passenger cars, why did you even start the business?” Ford allegedly said, suggesting that by buying Tata Motors’ car division, Ford was doing Tata a favour.
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But as they say, “When the going gets tough, the tough get going.” Ratan Tata, known for his unwavering resilience, decided not to sell the division after all. Instead, he buckled down, putting his nose to the grindstone, and worked tirelessly to turn things around. Soon enough, a revamped version of the Indica hit the market, and this time, it resonated with consumers. The car that once seemed doomed became one of Tata’s best-sellers, marking the beginning of a triumphant turnaround.
The tables turn: Tata strikes back
Fast forward to 2008, and the winds of fortune had shifted. Ford, reeling from the global recession, was looking to offload its luxury car brand, Jaguar Land Rover (JLR), to stay afloat. Tata Motors swooped in and acquired JLR from Ford for $2.3 billion. What was once a desperate sale turned into a strategic masterstroke for Tata, while Ford, struggling to shed non-core assets, found a lifeline in the deal.
The acquisition of Jaguar Land Rover wasn’t just a business triumph, it was poetic justice for Ratan Tata. The man who had once been told he knew nothing about cars was now at the helm of some of the world’s most prestigious automotive brands. Ford, on the other hand, could only watch as Tata Motors, now firmly on the road to success, left them in the rearview mirror.
PNN