The deal is struck between the US automaker Ford and Indian conglomerate Tata. Tata Motors is all set to acquire Jaguar – Land Rover for a sticker price of around $2 billion. Ford is actually asking lesser than what it paid for the brands. Ford will pay the employees pension funds and Tata shall be committed to buy engines from Ford, and maintain the style of the brands. That’s the deal that was struck yesterday in New York.

Tata’s shall now have a stronger foothold outside India, but it would be interesting to see how they manage the truck maker’s image and the luxury brands.

So what’s in it for India?
Well, something that’s immediately expected is to get these brands in India esp. the Land Rovers, the cat can wait. Later you may find some technology following to Indian cars as well, provided Ford doesn’t have an IP problem.

Issues apart it’s really good to see the Indian car maker come of age. Not just with the acquisition but more importantly with the Nano. It was remarkable to see all CEOs of major auto companies’ line up to get a glimpse of the Nano. It’s truly pleasant to see an Indian brand amongst the biggies of the industry.

What next?
Many call 2008 as the year of the Tata’s, with the small car and new models being lined up for the year to come. What I would like to see is some green cars to be launched, say hybrid or ethanol or hydrogen based cars. Something that should largely addresses the rising fuel prices. The Land Rover LRX is car that they could get inspired from. You something like that thing in your bouquet and you right there on top of the competition.