One fact is indisputable. Tata and Ford are two of the best known names in the automotive world.
There is one big difference. Ford, thanks to Henry, has been making cars for about 120 years!
Tata entered the automobile industry as Tata Motors recently. However the Tata Group’s claim to fame was that it was India’s largest truck maker, making four Lakh trucks annually. This put them on the global list of truck manufacturers.
Ratan Tata was the Chairman of the Tata Group. In 1998 Ratan Tata, as Chairman of Tata Motors decided to venture into the passenger car business.
A wise decision. India had only two passenger cars to offer the public. The Hindustan Motors’s Ambassador and Premier’s Padmini. Both antiquated fossils!
Seeing and seizing this opportunity in 1998 Tata Motors launched the Tata Indica. It was India’s first car to be designed and built by an Indian Company. It was a result of Ratan Tata’s Dream Project.
The Indica was well received. Ratan Tata then realized that the family car in India was a two wheeler scooter! His next dream project was to make a very affordable family car.
He promised to make a car for under Rupees One Lakh. And he delivered!
“A promise is a promise’ he said, as he unveiled the car at the Auto Expo in Delhi. Tatas had worked around the clock to make this happen.
That year, the dates of Auto Expo in Delhi clashed with the Detroit Moto Show, America’s most important show. However, the foreign media was in Delhi to see the One Lakh car, the Nano.
Sadly, when the Nano hit the market it was not up to expectations. Sales were dismal. It failed to set the cash registers ringing. It was not a successful enterprise.
Tata Motors decided to sell the Nano factory.
In 1999 Ford Motors was interested in buying Tata Motors.
Ford invited Ratan Tata and his Team, who flew out to Detroit to meet Bill Ford, Chairman of Ford Motors.
The meeting of two giants, Ford and Tata, represented by Bill and Ratan lasted 3 hours. The meeting yielded no results. On the contrary, Bill Ford made rude remarks and humiliated Ratan Tata. Bill Ford told Ratan Tata, “You know nothing about cars! Why did you start a car business at all? We are doing you a big favour by buying your car division!” Ratan Tata, being the gentleman, did not retaliate, inspite of the rudeness and humiliation. He swallowed his pride and decided not to sell his car division. The Team returned to India the same day.
Back in India, Ratan Tata and his Team went into over drive. They set about making cars.
Within record time, with his vision and the Tata Team’s energy and enthusiasm, Tata Motors was selling some of the best cars in India. Tata Motor’s star was shining bright.
Meanwhile, back in the States, the Big Three Auto manufacturers, General Motors, Ford and Chrysler were in dire states!
Ford Motors was bleeding badly and its biggest wound was Jaguar Land Rover (JLR) in England.
Now the Ganga flowed in the opposite direction! Bill Ford and his Team came to Mumbai. It was a very successful meeting. Tata Motors bought out JLR! Bill Ford told Ratan Tata “You are doing us a big favour by buying JLR. Thank You!”
Ratan Tata could have humiliated Bill Ford just as he had been in Detroit in 1999.
Ratan Tata, being a gentleman, did no such thing. He emerged a bigger and better person.
Today JLR are one of the best selling cars of Tata Motors. They are also one of the biggest and most prestigious names in the Auto industry globally.
Ratan Tata today is one of the most admired and respected businessman in the world.
Not only for the huge empire, that he has continued to built, but for his kind, humble and benevolent nature.
The Tata Group donates 66% of its profits to charities.
Ratan Tata’s interaction with Bill Ford is a lesson for everyone. Success is the best form for revenge!