From Telco, the truck-maker, to Tata Motors, the car manufacturer, it has been a long journey as much of discovery as of partnerships for the auto giant.
The latest in this line of tie-ups is the MoU Tata Motors signed today with Volkswagen. The two companies will explore joint opportunities and roll out products from 2019. VW group’s Skoda will lead the new drive.
It is Ratan Tata who should be credited for the truckmaker’s transformational journey. His taking over at Tata Sons in 1991 could not have been more fortuitous. As the country opened up, global carmakers made a beeline to India. In 1994, Ratan Tata was instrumental in Telco — as Tata Motors was then known — signing up with Mercedes-Benz for a joint venture.
His bigger dream was a more ambitious Made-in-India car. He got project going, but completely under wraps. In just another four years Telco unveiled the Indica at the 1998 Delhi Auto Expo, creating much buzz across the country.
Its commercial launch happened at the end of the year, and the diesel compact vroomed off. However, the Indica’s good run did not last too long as other competitive models entered the market.
But Ratan Tata was not done. He had big plans on the affordable mobility front. When news broke that Tata Motors was working on a ₹1 lakh car, the world sat up and took notice.
In the meantime, Tata Motors forged an alliance with Fiat, which wanted a strong partner to reboot its India innings. The excitement around the Nano downplayed this tie-up.
Ten years after the Indica launch, Ratan Tata showcased the Nano at the 2008 Delhi Auto Show and sent the audience into a hysteria when he said the car wóuld come at a base price of ₹1 lakh
By then, Tata Motors was also close to acquiring Jaguar Land Rover from Ford. The $2.3-billion price tag for JLR seemed high but today it is the lifeline of Tata’s car business.
For all the hype, the Nano lost its way as buyers did not fancy a ‘cheap car’. Then, Fiat ended the retailing partnership. Suddenly things were looking grim for Tata Motors.
Between 2009 and 2014, there were no car launches. Ratan Tata stepped down as Chairman in 2012. The new team launched the Bolt hatchback and the Zest sedan. Thn came the Tiago, which has got the momentum going.
With more products in the pipeline, the mojo is slowly returning to Tata Motors as it embarks on a new journey.