NEW DELHI —
Tata Motors, part of India’s fast-growing
Tata Group, is buying Jaguar and Land Rover from the
Ford Motor Company for $2.3 billion — about half what Ford paid for the brands when it bought them.
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The presence of Jaguar and Land Rover in Tata’s portfolio creates a marked contrast with the product that made Tata an international sensation this year: the tiny Nano, a bare-bones hatchback that sells for about
$2,500. As a result, some consumers may wonder how a company that builds the world’s cheapest car can operate luxury automakers at the same time.
And if sales of Jaguar and Land Rover were disappointing under the guidance of a century-old American carmaker,
will consumers be any more open to buying from a relatively unknown Indian company? Some car shoppers may hesitate, as they did decades ago when Japanese automakers known for small, fuel-efficient offerings began to build luxury sedans. But most consumers will not even be aware of Tata’s presence, said Wes Brown, a partner in the Los Angeles-based automotive marketing firm Iceology.
“Unless you’re an enthusiast, you don’t know who owns the car companies,” Mr. Brown said. “As long as the cars look good and work well, people aren’t going to care.”
