Tata, the Indian conglomerate, has emerged as the front-runner to buy Jaguar and Land Rover, as the turmoil in world debt markets makes it more difficult for private equity firms to secure funding.

Ratan Tata, the chairman, has formally confirmed his company’s interest in buying the marques, which have been put up for sale by Ford, the struggling American carmaker.

“It will give us more of a global presence,” he said in an interview. “It is to give us scale and global reach as we take ourselves away from subordination to a single economy.”

Tata is understood to be one of only two likely trade buyers for Jaguar and Land Rover. The other – Mahindra & Mahindra, a maker of 4x4s – also hails from India.

The sale, on which Ford says it does not expect to make an announcement until the end of this year or early in 2008, is thought to have drawn preliminary interest from at least five private equity firms. However, corporate financiers believe that their chances of prevailing in the $1.5 billion (£745 million) auction have been hit by the near-shutdown of the credit markets since late July.

Three of the firms are being advised by former Ford executives. Texas Pacific Group has retained Bob Dover, once chief executive of Jaguar and Land Rover. Jacques Nasser, the former Ford chief executive, has teamed up with One Equity Partners. Sir Nick Scheele, Ford’s former president and chief operating officer, has joined forces with Ripplewood.

Other buyout groups known to have expressed an interest are Cerberus Capital Management and Apollo Management.

Pre-tax losses at Jaguar in the UK halved last year from £535 million to £258 million, while Land Rover made a profit of £99 million.

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