Ratan Tata death: Tata Sons’ Chairman Emeritus Ratan Tata, who passed away late night on Wednesday, always sought to push boundaries. This was best exemplified by the decisions he took at Tata Motors. Automobiles were a passion for Tata, and he ensured that many others could share with that. That explains why he took the plunge into manufacturing passenger cars, even when Tata Motors had had a successful run as a commercial vehicle manufacturer.
Under his leadership, Tata Motors launched several models like the Tata Sierra, Tata Sumo, Tata Safari, Indigo CS, and Indica, all of them big successes. Then there was the cheapest car, Nano. Many of these models have been relaunched with updated features. For example, Tata Safari, which was phased out in 2016, was relaunched in 2021. Moreover, other models such as Nano and Sierra are getting a revamped electric version.
India’s first SUV: Sierra
Ratan Tata’s tryst with passenger cars began in 1991, with the launch of Sierra—the first off-road sports utility vehicle by an Indian original equipment manufacturer. It was based on Tata’s X2 Platform. The bold step by Tata, pitted Sierra against the likes of Maruti 800, Maruti 1,000, amongst others. Launched at Rs 5 lakh, the car was ahead of its time, boasting several segment-first features such as power windows, power steering, tilt steering, and central air conditioning, amongst others. At its peak in 1994-95, 3,910 units of the car were sold as per industry estimates. The car was phased out in 2001 amidst increasing competition.
Notably, Tata Motors will be bringing back the electric version of Tata Sierra, which will be launched in 2025.
Tata’s love with Indica
In 1998, a large crowd in Delhi’s Auto Expo watched Ratan Tata unveiling Indica—the country’s first indigenously built hatchback with a diesel engine.
Ratan Tata, who looked visibly pleased during the launch said at the time, “This is the first passenger car designed and developed entirely in India. We have developed a car that is truly Indian in its conception.” Even before the launch, skeptics were questioning the rationale behind introducing the car. After all, Indica was Tata’s first attempt to venture into manufacturing hatchbacks, after years of making SUVs and station wagons.
With the slogan ‘More car per car,’ Tata Indica was an instant hit. Within years of its launch, Indica became the highest selling car in India.
“25 years ago, the launching of that Tata Indica was the birth of India’s indigenous passenger car industry. It brings back fond memories and has a special place in my heart for me,” Ratan Tata wrote in an Instagram post on January 15, 2023. Indica’s success was the answer for Ratan Tata’s critics.
The Indica impact was also witnessed amongst rivals such as Maruti Suzuki, the country’s largest passenger vehicle manufacturer, which slashed the prices of its compact car models. In all, Indica sold more than 1.4 million units.
While Indica had a good run, in the later years the car was plagued with several technical issues. The entry of global automakers such as Hyundai, Toyota, Fiat, Daewoo and Honda also spoilt consumers with choices. Notably, in an attempt to revive Indica as a brand, an electric version of Indica was also showcased in 2011, but it was never commercially launched. A CNG variant of Indica was also launched to entice customers. But tighter emission norms and increase in competition led to the halt of Indica’s production in 2018. .
Tata’s Nano
For Ratan Tata, launching the Nano in 2007 was part of a vision to ensure that every Indian household would have a car. “I have a dream of a car that is affordable for the masses,” a very emotional Tata had once said in an interview.
But despite good intentions, the car was embroiled in many controversies. The Tata Nano plant in Singur, West Bengal, had to be shifted to Sanand in Gujarat in the face of protests by farmers whose land was being acquired to build the plant.
Then there were instances of Nanos catching fire. That affected perception among consumers. A failed marketing strategy was the final nail for Nano. Its production was finally halted in 2018.
In an instagram post on May 2022, Ratan Tata said that what really motivated him to produce the Nano was the struggles of Indian families with scooters. “What really motivated me and sparked a desire to produce such a vehicle, was constantly seeing Indian families on scooters … The Nano, was always meant for all our people,” his post read. His commitment with Nano, was reflected in Tata Nano project for the production and manufacturing of Tata Nano.
Tata Nano sold close to 298,000 units throughout its lifetime.
Reimagining JLR
Ratan Tata took Tata Motors global with the acquisition of Jaguar Land Rover (JLR) from Ford Motors in 2008. After the acquisition, when workers at JLR asked Tata what he intends to do, he didn’t have an immediate answer. But he intended to do something big with JLR, he told in an interview.
However, the acquisition was riddled with several hiccups, including the global financial crisis of 2008, repositioning of JLR as a luxury brand, JLR’s limited product portfolio, quality issues and intense market competition.
After years of struggling to revive JLR as a brand, Tata Motors introduced the ‘Reimagine Strategy’ in 2023, wherein Tata Group aims to clock £30 billion in revenue by FY26. Tata Group will be investing £18 billion or nearly Rs 1.9 lakh crore in JLR until FY28. Tata Group will also be manufacturing the electric version of Range Rover and Range Rover Sport in India at its Chakan Plant. JLR’s first indigenously -built EV will be introduced by CY25.
Tata Group will also be investing more than 4 billion pounds or ₹42,500 crore to set up a 40-gigawatt battery cell gigafactory in UK. The gigafactory is touted to be the Europe’s largest electric battery factory and will commence from 2026.
In the March quarter of FY24, Tata Motors reported a consolidated net profit of Rs 17,529 crore, up 45.67% YoY, driven by the new launches and JLR sales.