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As India's Tata Motors finalises its purchase of Jaguar and Land Rover, analysts are questioning its ability to integrate the luxury auto brands with its staid but profitable line-up of cars, trucks and buses.
Tata Motors is expected to announce an agreement to buy the two brands from Ford Motor Co as early as Wednesday, a deal analysts say will create opportunities but also challenges for India's No. 3 carmaker.
"About 10-12 years ago, Tata was clearly only a bus and truck maker, while today it is also about small cars, plus Jaguar and Land Rover," said Mohit Arora, managing director for India at J.D. Power Asia-Pacific.
"It's a bit like an elephant: whichever part you touch, you get a different impression. And there are fears that with so much bulk it can't run," he said.
Tata's presence is mainly in the low- to mid-end segments in India and some developing markets, and some analysts have questioned the rationale behind it snapping up brands that will push it into the luxury category and into markets where it has limited experience.
Tata Motors dominates India's commercial vehicle segment with a market share of 60 percent, producing a wide range of vehicles from sub-1-tonne mini trucks to buses with a reputation for sturdiness and good value for money.
It moved into cars a decade ago with the functional Indica hatchback and in January unveiled Nano, priced at just above $2,500, or about half the price of the cheapest car on the market now.
Analysts are doubtful if such a line-up can support the ultra-premium Jaguar and Land Rover brands.
"There is very little fit with Tata's current line-up, there are no product synergies, and it will also be very diff ...