After 20 years in charge, Ratan Tata steps down as chairman of Tata Sons next December after 20 years. He took time at the recent Delhi Auto Expo to reflect on his achievements.
These include the production of the company’s first passenger car, the Indica, the introduction of the Nano budget car and the acquisition of Jaguar Land Rover.
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“I think my achievements must include moving Tata from a commercial vehicle maker to a passenger car maker which had never been done before by an Indian company,” he said.
“We designed and produced our own car which many people thought was not possible. Later we introduced the Nano, we have also developed smaller commercial vehicles and we have entered the international market with the acquisition of JLR.
“Tata has embarked on a journey of growth and geographical expansion and the acquisition of JLR has put us into the international market place and sensitive to the volatility of those international markets and fuel prices.”
He added that 50-60% of the company’s revenue is now derived outside India although international markets were going through a difficult and tense period.
“But we have a stable and recognisable presence internationally and we have new models to be unveiled and the synergies with JLR in India will help us become a true international player.”
The chairman added that Tata and JLR are already realising synergies in terms of joint engine programmes and building Land Rovers in Pune. He said: “We will look at manufacturing other products in India further down the line which may even involve shipping vehicles ‘back’ to the UK.
“We are also looking at further AWD models for the Tata brand and hybrids although there is no set timetable, it’s a question of identifying opportunities.”
Asked about the possibility of selling Tata vehicles in Europe or the US, Tata said: “We need to be able to build a sustainable business and establish a logistics supply line as well as a dealer network. We have a certain amount of experience with JLR and we can learn from them, but first I see it as more important to establish Tata in Asia and Africa.
“The problem with bringing something like the Nano to the US or Europe is that the markets demand more equipment and driveability. There are also a lot more stringent rules in terms of crash testing and emissions because this is what people have come to expect.”
Has he been disappointed with sales of the Nano in India? Tata said: “We did experience a number of problems with the introduction of the Nano. I personally identified the need for a budget car to move people out of two- and three-wheelers and on to four wheels.
“We had 300,000 orders at launch but our first problem was that we had to abandon our original plant and build another one because of disputes with former land owners.
“The first 100,000 cars were built at our other plants as we tried to meet the initial orders and quality did suffer as a result. I don’t think we were quite ready. But the basic concept holds – we have never pushed the Nano as a poor man’s car, but as an affordable family car. The press has played a role in labelling it as a poor man’s car. Time will tell as to whether it was a gutsy or stupid thing to do – I think it will be gutsy.
“My legacy is a company on the move and the ability to move with the times. I have not told my successor Cyrus Mistry how he should run the business in the future, that is entirely up to him.”
He confirmed that JLR is looking to establish a production foothold in China which is now the company’s third largest market.
“We are discussing potential partnerships with Chinese companies but I cannot reveal any names at the moment,” Tata said.
