Ratan Tata, the chairman of the Indian conglomerate Tata Group in 1999, was humiliated when he together with his team visited Detroit to sell the group’s fledgling car business to Ford back in 1999 but came back to ‘do an enormous favor’ nine years later by taking over the US giant Ford’s luxury segment Jaguar and Land Rover (JLR) via all-cash transaction of $2.3 billion from Ford in June 2008, the amount that was almost half of what Ford paid to acquire both brands.
Changing Consumer Preference from luxury cars to luxury SUVs came as a blessing in disguise for JLR business. Using his car segment experience (see video below), Ratan Tata responded to this changing consumer needs immediately. So, the changes that could have taken up to 3-5 years, took just 1-2 years under his leadership at JLR.
By 2013, his strategy to invest in new products such as a better engine and design started paying off. With the introduction of new sports cars and entry-level Jaguars into markets, sales clocked up to 80,000 units that year. It further increased to almost 1,75,000 units by 2017 revving JLR revenue up to $34 Billion, a much better ROI.
What exactly led to this success and growth in Ratan Tata’s car segment business?
We have explained the same in the video below:
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