“You do not know anything, why did you start the passenger car division at all?” asked Ford officials in a condescending tone.
India has endured centuries of attacks from various corners of the world. Be it ambitious rulers from Central Asia who wished to dominate the subcontinent or those from the West who, in the name of the spice trade, eyed India’s wealth, the nation has always been on the tip of a knife.
Even today, 79 years after independence, the world goes gaga over chaats and cheap labour from India, but doesn’t give two cents when it comes to insulting India and Indians. The story, obviously, was no different in 1998 when one of the biggest automobile makers in the world thought insulting an Indian and an Indian brand wouldn’t do them any damage.
However, this insulted Indian in question did not forget the condescending tone that was thrown at him during a business deal talk. This is the story of the great late Ratan Tata and how he gave Ford a taste of their own medicine.
Those who are aware of automobile industry developments know how and why Ratan Tata came up with the idea of producing the Tata Nano, the cheapest car in the world. The car was a real problem-solver for families with weak economic backgrounds who had to travel on motorcycles and scooters under the scorching heat or battle heavy downpours, putting lives at risk.
Therefore, the Nano was produced to cater to this category of people. Unfortunately, the Nano’s marketing strategy backfired, as the tag ‘world’s cheapest car’ did not go well with people’s mindsets. Not to forget, initially, the car had several mechanical issues, which did not win people’s trust.
The car quickly phased out of the market, but nonetheless, it was a problem solver.
The Nano wasn’t Ratan Tata’s first step towards solving a problem in India’s mobility sphere. Back in 1998, Tata produced the Indica, India’s first hatchback powered by a diesel engine. Unfortunately, the car’s sales numbers weren’t in Tata’s favour, and the company decided to sell to Ford Motors.
A year later, in 1998, Tata Motors set up a meeting with automobile giant Ford in the United States of America. Given Ford’s reputation, Tata had expected a fruitful session. However, the meeting left a bitter taste for Tata as Ford insulted Tata’s idea, stating, “You do not know anything. Why did you start the passenger car division at all?”
That’s when Ratan Tata decided not to sell Tata Motors, and in the next few years, Tata Motors established itself as a leading player in the Indian automobile segment. However, in the back of their mind, the late Tata had not let go of the insult and prayed for an opportunity to hit back at Ford.
Nine years later, in 2008, when the recession hit the world, Tata’s opportunity landed on his doorstep. Ford Motors filed for bankruptcy, and Tata, with a smirk on his face, offered to buy Jaguar and Land Rover from Ford’s portfolio for USD 2.3 billion. With very few options left, Ford agreed to the deal, and Tata saved Ford’s day.
To date, this is one of the biggest acquisition deals in the world of automobiles—a history and sweet revenge by Ratan Tata.
