When Tata Motors acquired Jaguar and Land Rover from Ford, the biggest concern among analysts was how prepared is the company to manage the luxury brands. Tata Motors had absolutely no experience in premium cars. The most expensive car in the Tata stable is the SUV Safari, which is a generation or two behind most SUV models in the international market.

Tata Motor’s strength is in coming up with ingenious ways to launch new products and variants in the most cost effective manner. It has bought whole plants, tools and designs discarded or discontinued by global auto makers and used them to build cars. This strategy will work well in developing markets and at the lower price points.

High end luxury autos are an entirely different ball game. Everything from the engine to the floor-mat has to be state of the art. The models have to be very distinct from what the competition offers. The cars should have character and should appeal to buyers who are used to being spoilt for choice.

Well aware that it will need a lot of outside help in engine technology and designs, Tata Motors is slowing going about building alliances. As part of the takeover agreement, Ford is committed to supply engines and transmissions to Jaguar and Land Rover. That should give Tata some time to build its own capabilities or find another reliable supplier.

In case Tata Motors is interested, Daimler is said to be ready to supply components. Daimler chief Dieter Zetsche told a German magazine that his company will be ready for talks, if approached by Tata Motors. After all, Daimler holds a 7 per cent stake in Tata Motors

An even more exciting prospect for Tata Motors is the prospect of an alliance with legendary Italian design house Pininfarina. Though well known for designing some of the legendary Ferrari models, the design house is not doing well financially of late. Tata Motors is said to have arrived at a deal with Pininfarina to set up a design centre in Pune. Tata Motors is also said to be interested in picking up a stake in the Italian company, which is planning to raise additional capital. If it materialises, the deal will provide Tata Motors access to a really world class design house with decades of experience in luxury cars.

There is good news on the product front too for Jaguar. The recently launched XF model, which is a make or break model which marks a major change in design philosophy for Jaguar, is receiving rave reviews. A recent review in The Washington Post was titled ‘In this case the ‘J’ stands for joy’ and said the XF is ‘arguably one of the best Jaguar cars ever produced’. That is serious praise for a storied brand like Jaguar and must be sweet music to the ears of Ratan Tata.