FORD is poised to name India’s Tata as preferred bidder for Jaguar and Land Rover, two of Britain’s most famous car firms.

Sources close to the negotiations say an announcement could come in the next fortnight, bringing to an end a six-month auction. Last week three bidders remained – Tata, fellow Indian car group Mahindra, and American buyout group One Equity.

Ford’s choice of Tata will be a significant moment in the history of the car industry, marking the first time a major western car group has been bought by an Indian company.

Tata is expected to pay about £1 billion, although the exact amount is likely to be hammered out during the detailed talks that will follow the preferred-bidder agreement.

Tata, a conglomerate led by Ratan Tata, will have to negotiate a settlement with pension trustees, and a side deal with Ford over the continued supply of engines and other components.

Jaguar and Land Rover together employ 15,000 in Britain. It is understood that Tata plans to retain all three of the UK factories – at Solihull and Castle Bromwich in the Midlands and Halewood on Merseyside.

Ford decided to sell the two famous marques earlier this year as part of a restructuring plan aimed at restoring its financial health. Like its Detroit rivals, it has suffered from fierce foreign competition, and high pension and healthcare costs. It bought Jaguar in 1989, and Land Rover in 2000.

It has for the moment put on hold plans to sell Volvo, the Swedish car company.

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