10 Nov “Tata Motors : A Positive Turnaround in Earnings”
The Remarkable Turnaround of JLR: From Tata’s “Biggest Mistake” to a “Biggest Victory“
On June 2, 2008, Ratan Tata made a bold move by acquiring the UK-based luxury car brands Jaguar and Land Rover (JLR) for a hefty USD2.3 billion, despite the economic downturn and criticism from industry experts.
Many questioned this decision, dubbing it Tata’s “biggest mistake” due to the global recession and declining demand for luxury cars.
Tata Motors was burdened by INR 21,900 crore in debt and a staggering INR2,500 crore loss in FY09, marking its first loss in seven years. Both Tata Motors and JLR faced considerable difficulties.
Fast forward fifteen years, and the narrative has shifted dramatically.
Tata Motors has become India’s third-largest carmaker, boasting a 13.4% market share in the passenger vehicle segment. Meanwhile, JLR has emerged as a significant contributor to Tata Motors’ consolidated revenues and profits.