Land Rover and Jaguar are now Tata brands - that's great. But...

So, it's official now - Land Rover and Jaguar are now brands owned by Tata Motors. That's great news from an Indian perspective. Something to be proud of, no doubt. The Tatas were the best among the potential suitors for these brands - they have been pioneers in India, and their work ethic, labour standards and work culture have been far, far ahead of the times. Those in western countries who might whine about selling off these famous brands to an Indian company have to be either ignorant or biased. Ignorance can be forgiven and it can be cured, but bias...well, it's their problem anyway...

Ratan TataRatan TataI have always been a great fan of the Tata group - perhaps I am biased in my own way, because I tend to think of the earlier stalwarts such as Jamsetji Tata and JRD Tata when I think of today's Tata Group. Ratan Tata is a great man in his own right, steering the group in the midst of massive changes both domestically and globally. Doing so while not losing sight of the values that the Tatas are known for, is no mean task. Making a reasonable success of their passenger car business is no small feat when just about every multinational giant has access to the Indian market and the local giant (Maruti-Suzuki) had a phenomenal headstart and a near monopoly for years. In my opinion, his style (and his companies', too) is almost quite distinct from that of the Ambanis, Bajaj's, etc. Well, that's my impression, anyway. But from time to time, I can't help wishing that he had directed some of the great energy of the Tata dynamo towards technologies and businesses of the future. What do I mean by that? Well, automobiles and steel have been pretty much the bread and butter of the Tata group - their core strength, no doubt. So it is only logical to expand internationally in these sectors, which Ratan Tata is making sure of, steadily and impressively. The acquisition of Land Rover and Jaguar brands will add to the prestige of the Tata Group, no doubt. However, these brands are not exactly known for their fuel efficiency or environmental friendliness - which is exactly my concern. The same can be said of Tata's expansion in the hotel industry - but I also realize that for the Tatas, it's also an area of strength and expertise.

Here's what I'm concerned about: as global concerns grow about climate change and pressure to take serious action mounts, it would somehow be less attractive to buy an SUV like the Land Rover. The Jaguar too, has been largely a rich-man's toy, or a status symbol for the neo-rich and the wannabes. But, judging by the trend in Hollywood and the waiting list for Toyota's hybrid cars, I have to wonder if Jaguar sales can hold up - no matter who owns the brand. Well, $2.3 billion is perhaps no biggie for the Tatas - obviously they have looked at all kinds of situations and other intangible benefits that would arise out of these acquisitions. I just hope that they are not forced to sell these vehicles to the neo-rich in India just to cover their bottomline!

I don't even want to pretend to be a business analyst - no, I am just writing this as someone who puts the environment and the future well-being of the planet first and foremost. It's part of my world-view - I just cannot look at any news item without thinking of how it's going to affect the environment and the overall well-being of life on earth. So, from that angle, I feel that a time would come when everyone would be forced to drive less, and use public transport more. And if people really have to drive, then they would have to drive the most efficient vehicle that they can afford. Similarly, flying around the globe for 'vacations' would have to be cut back, if we are ever going to seriously tackle climate change. Emissions from the aviation sector are orders of magnitude greater per passenger per kilometer - so flying will have to be limited to essential travel, and vacations to exotic locations do not count as essential. So, from this angle, I expect (or would like) to see some major changes in the lifestyle, and, consequently, the kind of products used. As an Indian and a fan of the Tata group, I have to be concerned about the most recent acquisitions.

A lot of crocodile tears were shed around the world as to the possible environmental effects of large-scale introduction of the Tata Nano in India and elsewhere. If I could somehow talk back to all the TV pundits back then, I would have told them to just shut up and take a trip to India and see for themselves the way most Indians commute for work everyday. It's sheer arrogance, stupidity, hypocrisy, ignorance, and, possibly jealousy and racism, all rolled into one - that's the kind of feeling I got when I heard these chaps talking about the environmental effect of millions of Indians driving this car - while paying no attention to the number and types of vehicles driven in their own countries. Even now it makes me mad that westerners could talk about the environmental effect of Indians driving, without mentioning all the SUVs, RVs, boats and all kinds of monsters plying on their own roads. That being said, here is my position on this issue: every Indian household deserves to own a car (or two, depending on the size of the family). HOWEVER, they need not, and should not, all drive these cars EVERYDAY to work. Owning a car is different from driving it everyday to work. Everyday commuting should be done largely by public transport. If the existing transit capacity and quality are not adequate, well, then get busy doing something about it. May be Mr. Tata's Nano would finally force the Indian government and the Indian elite to take transit more seriously, after all. Until now, public transport was always for the 'general public' - not for the elite. Well, now it's time to make transit good enough for the elite as well, so everyone can commute in relative comfort without honking everyone to death on the road.

So, given that I would like to see the majority of the population use transit in the future, I wish that Tatas would put their focus on this field once more. Why do I say once more? Well, Tatas have been making buses (and trucks) forever - but these buses cannot be said to be of international standards. Of course, they make them to suit the Indian roads, so hopefully as the roads improve, the buses will, too. But why stop with the buses? Why not move into trains? I know most Indians cannot imagine a private company getting into the railway business. May be privatization of the railways in India is truly a bad idea (this is one area where I clearly do not trust the private sector to give the best value for money. Besides, why should we hand over the priceless assets acquired since the time of the British to some greedy conglomerate or a cartel?). But Tatas could consider getting into the locomotive business or may be into automation, systems engineering, well...I leave it to the experts. But it may be relevant to note that the Hyundai group in Korea makes everything from automobiles to ships to state-of-the-art electric locomotives. Delhi Metro trains are made by Hyundai, if I'm not mistaken. As oil prices climb (as they must, with the impending 'peak production' within the next 10 - 15 years utmost) and pressure for urgent action on climate change mounts, I foresee a substantial increase in transit capacity worldwide, and a re-emergence of or renaissance for train travel. As an Indian, I hope that Tatas would be able play their role in the new scenario, and not get relegated into supplying the 'old' techologies - namely cars and SUVs that are not even hybrid.

If anyone thinks I am nuts to talk of Tatas getting into the railways business, well, I want to point out I'm not too off-base here: Warren Buffett, the richest man on earth and investment superstar, has been buying up railway companies (or substantial ownership of them) for the last couple of years. If there's one thing that can be said of "the Oracle of Omaha", it's that his ability to see through the hype and noise into the future has been second to none.

I know that many Indians would be justifiably proud of the Tatas' acquisition of Land Rover and Jaguar brands. I know many of them will get pissed off when someone talks about the environment in this context. But whether you like it or not, peak oil is not some myth, and not something in the distant future. Same with climate change. It is really ironic that while the main climate change body (the UN Intergovernmental Panel on Climate Change, IPCC) has been headed by an Indian, the general awareness and sense of urgency among the educated Indian youth has been nowhere near what is seen in some European countries. Even the value system of the urban Indian society is by and large somewhat incompatible with the kinds of changes that would be required of not just India, but every country in the near future. All I can say is, please get educated about these two issues - peak oil and climate change. In this context, there are two excellent books - both written by British authors, well-researched and extremely well-presented:

  • Heat: How to Stop the Planet From Burning - by George Monbiot
  • The Last Oil Shock: A Survival Guide to the Imminent Extinction of Petroleum Man - by David Strahan

If I had a bit of extra cash, I would seriously like to buy and present these books to Mr. Ratan Tata - I am not being presumptuous here. No sir! Like I said, I am a great fan and admirer of the Tatas - I just want them to be part of the future - a future that is sustainable and environmentally friendly.