Let’s celebrate the most important attribute of Tata Motors buying Jaguar and Land Rover. That this is proof, yet again, of global capitalism?s power to accelerate past historical baggage and present prejudice. American dealers of Ford, which is selling Jaguar and Land Rover to Tata Motors, had wondered aloud whether a Third World owner may put off buyers. Those dealers are living in a different time. Almost anyone who has the credibility and cash can buy any brand (exceptions, mostly unjustified, have come when buyers have been from the Middle East and China). So, those who toast only Indian business strength when Indian companies buy big abroad get only half the point. The meritocracy that underpins global capitalism is the other half of the story. And this works both ways: India must be as receptive to non-Indian acquisitions of blue chips. India?s history hasn?t been pleasant?remember the ITC-Bat controversy? We can?t be French about this. Even the French can?t be French. Laxmi Mittal did buy Arcelor.
Mittal-Arcelor has worked. Can Tata Motors make Jaguar and Land Rover work for it? The answer will partly depend on where Tata Motors wants to sell the cars. If Indian and Chinese premium markets are among the prime targets, and they should be, keeping production in Britain?the Tatas have promised this to the unions?may not be 100% feasible in cost terms in the medium term. The argument that the brands have cach? because they are ?British-built? is romantic illogic. Aston Martin, another British brand (James Bond?s favourite) will now be produced outside Britain. Jag and Rover buyers are unlikely to walk away because British hands haven?t built the spark plugs. Jaguar may present the tougher challenge for Tata Motors. Land Rover is a fit for it because the latter makes four-wheel drives. Plus, Rovers have both humdrum and show-off attributes?one can see Rovers on country roads and in cityside country clubs?and that is a good combination in India. Jags aren?t selling that well globally?America is an exception?and have been pipped in the design/cach? race by Mercedes, BMW and Audi. Jaguar?s E series will always remain a classic. Tata?s challenge will be to make the current XJ Jaguar series compete against BMWs and Audis. An Indian owner fighting for a British brand against German ones?that?s globalisation for you.
