TATA/ Mahindra are overpaying, if the numbers being touted are for real.
There is good reason that other majors or financial groups are not bidding for Jaguar although they certainly have the money and technical expertise to turn them around short and mid term.
Jaguar is essentially a dead brand because the average age of the typical buyer is said to be very high, and most buy purely because of "British" and "Anglo" looks, origin and ownership.
How long can such a niche demography last, and be sustained?
Because beyond that, no matter what TATA/Mahindra do, rest assured the Germans and Japanese would stay few steps ahead. This segment does not reward also rans.
TATA or Mahindra will likely win the bid. Times of Islamabad and other dhimmi media will go to town about how India has 'arrived'. And after the dust has setlled, TATA will discover that they have paid money essentially to buy a junk brand. Great history, no meaningful future, and certainly not any proportinate return in technical expertise compared to the investment.
For the same amount, they could set up proper engineering and design facilities, that would engineer cars comparable to Hyundai et al. Not glamorous, but more handsome return long term.
But if they are hell bent on acquiring, It makes more sense to buy Prodrive than Jaguar/LR.
PS: Let One Equity "win" this. Please god. |