Today, when we hear the name Tata, we instantly think of luxurious and incredibly well-built products—from Salt to Scorpio. Under the visionary leadership of Ratan Tata, Tata Motors has carved itself a permanent place in history.  Despite being one of the most successful automakers in the world, under the transformative leadership style of Tata, the company has a devoted following in India.  One of the most inspiring qualities of Ratan Tata is that he always led by example, constantly proving what an Indian company can really do. The leadership style of Ratan Tata involves empowering the employees and giving them the freedom to make decisions. He is a very approachable leader who is always willing to listen to his employees' concerns.  According to reports, the company’s sales in the domestic & international market for Q4 FY 2023-24 stood at 2,65,090 vehicles. 

Brand History

The largest automotive firm in India, Tata Motors Limited (TML), is a $42 billion company that is a prominent global producer of cars, trucks, buses, utility vehicles, and defense vehicles. Part of the more than $100 billion Tata Group, which was started by Jamsetji Tata in 1868, Tata Motors was incorporated in India in 1945. Acknowledged for its exceptional quality, uniqueness, and superior engineering and design, the company is paving the way for the development of mobility in India. 

Under the mentorship of Tata, Tata Motors and Daimler-Benz, better known as Mercedes-Benz, formed a joint venture in 1954 to produce commercial cars. Following fifteen years of cooperation with Mercedes-Benz, the two manufacturers decided to continue building Mercedes-Benz passenger cars in India. They also agreed to form a new joint venture, and the Mercedes-Benz E220 was introduced the following year. Tata entered the passenger vehicle industry with the 1991 debut of the Tata Sierra, following its success in the commercial vehicle segment. Throughout its existence, Tata has never shied away from innovation. The automaker has a history of creating new market niches and redefining existing ones with its products.

Did The People's Car Pause the Market?

Tata Motors caught billions of eyeballs in 2008 when unveiled the ground-breaking Tata Nano. The idea was to provide the masses of lower-middle-class people with access to cars. The brand created the Tata Nano in response to realizing there was a significant void in the automotive sector. The car, which debuted as "The People's Car" during the 2008 Auto Expo in India, was designed to provide safe and comfortable transportation to the general public.

The base edition of the Tata Nano, which cost one lakh rupees, was small but roomy, seating four people, and without air conditioning, power steering, and airbags. For the price, it rigorously adhered to quality, mileage, and environmental criteria. The car was positioned and advertised as a ‘One Lakh Rupees Car’ because the target market was the middle-class and lower-middle-class sector. Its primary USP was how much it cost. It was offered to a four-member Indian middle-class family as a safer substitute for a bike or scooter. Nano was never meant to be a rival to other automakers. Modern families found the bright colors appealing, and the roomy rooms provided comfort.

What Went Wrong with Nano

The Tata Nano generated a lot of hype before launch. Every national and international media outlet covered the Tata Nano story in great detail. The product was promoted by the buzz, but only as a ‘cheap car.’ However, Ratan Tata always referred to it as a ‘people's car. Regrettably, the media referred to it as a cheap car.

 According to reports, the first sales of the Nano car were only 30,000 (approximately); Tata Motors intended to build 2 50,000 units annually. The sales record of 74,527 units was set in 2011–12 before falling down to 7,591 units in 2016–17. June 2018 saw the factory construct just one Nano before shutting off operations.

Ratan Tata says, “I don't think we were adequately ready with an advertising campaign or a dealer network. I don't consider it to be a flop. I consider that we have wasted an early opportunity.”

The marketing approach employed by Tata Nano failed to connect with Indian consumers. Most purchasing decisions are made based more on emotion than logic. The advertising campaigns were more feature-focused and lacked that emotional resonance. Attesting to features in marketing was also important because the corporation wanted to convey to consumers that they offered nearly everything that is typically included in cars. However, they lost their hold on the market because they were unable to make the emotional connection at some point.

Acquisition of Jaguar and Land Rover 

When Ratan Tata and his colleagues tried to sell the group's then-young automobile industry to Ford in 1999, they were met with ‘humiliation.’ However, nine years later, Ratan Tata returned to do a big favor by acquiring the US giant's iconic brands, Jaguar and Land Rover (JLR). In June 2008, Tata paid $2.3 billion in cash to Ford to acquire Jaguar and Land Rover, over half of the sum that Ford Motor spent for both brands.

During that period, JLR's antiquated designs were becoming old, and the British automaker was being rendered obsolete by modern, efficient diesel engines. It's not that Ford, the American automaker, didn't attempt the turnaround.

 

The automaker focused on fixing quality issues from the outset of the project. However, the company was unable to make much of an impact in the premium vehicle market. Ford introduced the entry-level Jaguar X-Type before turning the reins over to Tata Motors, but it was later under fire for essentially producing a cloaked version of the company's best-selling Mondeo sedan for European markets.

Tata Nexon: Leading the Market

Tata Motors' cars, which include cutting-edge technologies, futuristic designs, and rigorous safety standards, have helped the company achieve enormous success in recent years. But the confidence that they strive for in their customers is what sets Tata automobiles apart from the majority of its competitors. Nearly every Tata product has performed exceptionally well in its market. The Tata Nexon is at the head of the pack. In the last two months, the vehicle has overturned several thrones.  The small SUV Nexon is the first to sell more than 600,000 units in the home market. Since its launch on September 21, 2017, the Nexon has sold 611,901 units domestically as of the end of December 2023. After 76 months, or little more than six years, since its introduction, the 600,000-unit sales milestone has been reached.