Tata mulls Jaguar, Land Rover buy

Ford bought Jaguar in 1989 for $2.5 billion, Volvo's car operations in 1999 from Sweden's Volvo AB for $6.45 billion and Land Rover in 2000 from BMW for $2.73 billion.

Ford officials were not available for comment.

According to sources close to the development, Tata Motors, whose parent group is one of India's largest and most respected business conglomerates having business interests spanning engineering, mining and energy to consumer products, IT and hotels and having operations in more than 40 countries, had appointed advisors to evaluate a bid and also signed a confidentiality agreement with Ford for access to the financials of the luxury brands.

When contacted, a Tata Motors spokesperson said the company does not comment on speculation on mergers and acquisitions.

Sources also said Mahindra & Mahindra (M&M), India's leading manufacturers of general-purpose utility vehicles and light commercial vehicles, and some other private equity players might also be interested in these brands.

However, industry analysts feel that Mahnidra & Mahindra might not be very keen, as Jaguar and Land Rover might not fit into its overall plan.