Purchasing entire companies rather than JV’s and buying used production lines signals a more mature approach
By Chris Devonshire-Ellis in Mumbai
Last weeks heralded purchase of the Land Rover and Jaguar marquees by India’s Tata Group from Ford for USD2.3 billion represents a major shift in the way Indian companies are able to obtain technological growth, in a manner that possibly outstrips the latent capabilities of China’s auto sector.
Although the deal, it has raised eyebrows internationally considering that premium global brands are being purchased by a country usually associated with cheap products, signifies different approaches to modernization between India and China, and may well prove to be a turning point when considering the future development of both nations. There are some fundamental differences in the way in which China’s auto manufacturers have chosen international partners, and have the capability to compete globally when compared to their Indian counterparts. Continue reading