Tata’s Takeover of Jaguar and Land Rover: Bumpy Road or Smooth Ride?

Tatas Takeover of puma and earthly concern Rover Bumpy Road or Smooth mobilize? In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British vanes Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2. 3 billion. Tata Motors stood to increase on several fronts from the deal. One, the acquisition would help the lodge acquire a global footprint and enter the high-end premier segment of the global automobile market.After the acquisition, Tata Motors would own the worlds cheapest car the US$ 2,500 Nano, and luxury marquees like the Jaguar and Land Rover. Though there was initial scepticism over an Indian company owning the luxury brands, ownership was not considered a major issue at all. The takeover has been greeted with jubilation, especially in India, because of the prestige of these marquee brands. On the separate hand, sceptics have also been wondering how this acquisition fits in with the Tata Groups ov erall strategy. What shag the Tatas do differently than Ford to ensure that the acquisition pays glowering?What major challenges will Tata Motors face in integration and marketing? I personally find it a very fascinating deal. Its clearly not a deal that is trying to build economies of scale in scarcely one business and just reach into new markets. Its quite a differently motivated deal. For Tata its not the first time that theyve reached for a brand with some prestige value as part of expanding their global visibility. So I think viewed as an acquisition that they intend to learn a great deal from, it could very well make sense.