Nano to JLR: Ratan Tata turned Tata Motors into a global auto powerhouse

Ratan Tata, one of India's most-respected industrialists from the storied Tata family, transformed Tata Motors from a domestic truckmaker into a global automotive powerhouse, spearheading the creation of the world’s cheapest car Tata Nano to the resurgence of British luxury brands Jaguar and Land Rover.

His leadership at Tata Motors not only redefined affordable mobility for the Indian consumer, but also turned the global spotlight on the country's manufacturing capabilities.

When Ratan Tata took over as chairman of Tata Group in 1991, Tata Motors—then called TELCO—was primarily a commercial vehicle company. But Tata’s ambition went beyond trucks and buses.

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In 1998, under his leadership, Tata Motors launched the Indica, India’s first indigenously developed passenger car. The initial response was tepid, but Tata’s perseverance and faith in Indian engineering turned it into a commercial success. The Indica became a symbol of India’s emerging capabilities in car manufacturing and was the first step in Tata Motors' journey to becoming a serious player in the passenger vehicle market.

Yet, one of Ratan Tata’s most audacious projects was the Tata Nano, launched in 2008. Tata envisioned a car that would provide affordable mobility to millions of Indian families, many of whom could only dream of owning a car.

Priced at around ₹1 lakh, the Nano was intended to be “a car for the people”. Although the car failed to live up to its commercial expectations, it exemplified Tata’s visionary approach and his desire to solve real-world problems through innovation.

However, Ratan Tata’s most celebrated move came not with the launch of a car, but with the acquisition of two British automotive icons.

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In 2008, Tata Motors bought Jaguar and Land Rover (JLR) from Ford in a $2.3 billion deal, a move that stunned the global automotive industry. Tata is often quoted as saying he was called "stupid" by his friends for deciding to buy the struggling British brands.

At the time, Jaguar and Land Rover were not the cash-flow giants they are now, and many questioned whether Tata Motors, with little experience in luxury cars, could handle the brands. But Ratan Tata’s strategic vision proved the doubters wrong. Under his leadership, JLR not only recovered but also thrived, becoming a significant contributor to Tata Motors' revenue.

“Despite intermittent financial challenges, Tata Motors’ 2008 acquisition of Jaguar Land Rover for $2.3 billion has strategically benefited the company by providing global presence and distribution, access to advanced technology, and enhancing its competitiveness in India—the world’s third largest and fastest growing automotive market,” said Rajendra Srivastava, Novartis Professor of Marketing Strategy and Innovation at the Indian School of Business.

JLR expanded Tata Motors’ reach to over 130 countries, with the luxury brands contributing up to 80% of the company’s revenue in certain years, Srivastava said. “Overall, the acquisition elevated Tata Motors’ brand prestige and positioned it for sustained long-term growth in the global market.”

Turning the tables

The JLR acquisition was made even more remarkable by the fact that, just years earlier, Tata Motors itself had been in talks with Ford to sell its car division. At a low point in the late 1990s, Ford had offered to buy Tata Motors' passenger vehicle business. Reflecting on that moment, Tata later recounted that Ford executives had remarked that they would be “doing us a favour” by taking the business off Tata's hands. Less than a decade later, it was Tata who purchased Jaguar Land Rover from Ford, a stunning reversal of fortunes.

He believed in long-term partnerships, collaboration, and a shared vision for sustainable growth.

Leader in EV race

Ratan Tata’s leadership was not just about building cars—it was about building a legacy. Under his watch, Tata Motors became a symbol of Indian ambition and capability. He also positioned Tata Motors as a leader in the electric vehicle (EV) revolution long before most Indian automakers took EVs seriously. Today, Tata Motors is a frontrunner in India’s green mobility movement, a vision seeded by Tata’s early investment in sustainable transportation.

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Rivals in the industry admired him. “Ratan Tata symbolised all the best qualities of Indian industrialists. Not only was he a highly successful leader of the Tata empire but he also engaged in philanthropy and activities that benefited society,” R. C. Bhargava, chairman, Maruti Suzuki India Ltd., told Mint. “His passing will leave a void that cannot easily be filled and he will be missed by hordes of admirers for the man that he was.”

Ratan Tata’s legacy at Tata Motors is one of daring ambition, calculated risks, and a steadfast belief in India’s potential on the global stage. His contributions will long be remembered as a defining chapter in the history of Indian industry and global automaking.