That passion for automobiles resulted in a fundamental change in the business model of Tata Motors. If it weren't for RNT, the firm may have well remained a stoic maker of commercial and utility vehicles, with half-hearted attempts at car manufacturing.
Mistry is no stranger to cars: he is more often seen in a Mercedes S500, although he likes his sports utility vehicles, too, namely a Mercedes M Class and a Land Cruiser. Between Cyrus, brother Shapoor and their father, the family owns an array of luxury cars that includes Bentleys, BMWs, Range Rovers and Mercs.
A person close to Mistry says he likes his cars but is not as 'emotionally involved' with them as RNT.
If Ratan Tata is fanatical about Formula 1 racing (and flying), Mistry is more excited about football.
When it comes to the business of auto, though, Mistry, who cut his teeth in construction, is wasting little time in coming up to speed. On Thursday, he along with RNT and the Tata Motors brass will dine with the company's key dealers in the capital. "This will be an introduction to Cyrus along with the senior management of Tata Motors," says a leading Mumbaibased Tata Motors dealer.
RNT's successor has also been doing his bit to acquaint himself with Tata Motors' expansive operations, people familiar with his schedule point out. Mistry has visited production facilities in the country as well overseas - he is also understood to have accompanied RNT to Jaguar Land Rover's base in the United Kingdom, besides meeting auto experts and spending time with the chairman himself.
RNT's relationship with Tata Motors goes beyond the bond a promoter has with his business. He is known to spend Sundays taking his bevy of beauties - which include a Ferrari California, a Cadillac XLR (his favourite) as well as a Tata Motors-made Indigo Marina - for a spin. It is this enduring infatuation that has resulted in game-changing results for Tata Motors.
The tipping point came in the mid-90s when RNT famously declared that the company - then known as Tata Engineering & Locomotive Co - would make a car as large as Maruti's Zen, with the Ambassador's internal dimensions, the price of a Maruti 800 and the running cost of diesel. The result? The Indica was born and, after the not-unpredictable teething problems, went on to firmly establish Tata Motors as a maker of affordable automobiles. More recently, Tata emulated Ford's vision for mass production of inexpensive cars by launching the ultra low-cost Nano. The car may still not have set the Ganges on fire but it has put India on the map of frugal engineering.RNT's expertise in automobiles can explain his presence on the Fiat S.p.A. board as an independent director - as well as his friendship with Sergio Marchionne, the CEO of the Italian automaker. On the shop floor, Tata has been known to take crucial calls that have had far-reaching implications. For instance, during the development of the Indica, Tata scrapped the boxy design developed inhouse and approached Italian design house IDEA.
"This decision eventually played a crucial role in the Indica's success," says Hormazd Sorabjee, editor,Autocar India. Elsewhere, RNT followed his gut and orchestrated the acquisition of the marquee Jaguar and Land Rover (JLR) brands from Ford. Critics, who felt the company overpaid, have been proved wrong, what with the JLR portfolio now accounting for more than two-thirds of Tata Motors' sales and 80% of profits. What is more, RNT's grasp of the intricacies of automotive design and technology has won him the admiration of top designers at JLR.
Mistry has stepped into Bombay House - he is currently deputy chairman - at a time the Nano has yet to prove a commercial success. Tata Motors is hoping a new, improved version - more powerful, more drivable, but with the same price tag - will help revive its fortunes. Mistry will be watching the progress closely.
(Source- http://economictimes.indiatimes.com)
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