Tata, the Indian conglomerate that acquired Land Rover and Jaguar, is to take a stake in Pininfarina, the iconic Italian car designer.

Industry sources have suggested that the next generation of Jaguars could be designed by a Pininfarina-led team in India, although neither side has commented on the implications of the move for the British marques.

Ratan Tata, the Indian group's chief executive, has expressed a desire to press on with a new Jaguar, the F-type, and has earmarked £1 billion for developing new models.

The European Union approved Tata's $2.3 billion (£1.16 million) purchase of Jaguar and Land Rover yesterday.

Pininfarina, renowned for its work on a stable of supercars for manufacturers including Maserati and Ferrari, has signed a letter of intent to co-operate with Tata, the manufacturer of the world's cheapest car, the £1,250 Nano, to build a design and engineering centre in Pune, western India.

Tata also has a car research facility in Warwick. There has been no elaboration on how design duties would be split between India and Britain.

Tata, which has a tie-up with Fiat, the owner of Ferrari and Maserati, will take a minority stake in the Pune facility and is also set to take part in Pininfarina's planned €100 million (£79 million) capital increase, due before summer.

While Tata's lorries dominate the highways of India and the company has made passenger cars since 1991, acquiring Land Rover and Jaguar from Ford represents a sharp turn in strategy into luxury territory, where Pininfarina is very much at home.

It is thought that the founding family that controls Pininfarina, which has worked with Jaguar in the past, is prepared to sell its 55 per cent holding in the business in the hope of reviving its flagging fortunes.

The fortunes of Pininfarina have dipped in recent years, partly as manufacturers have moved more design work in-house. The group posted a net loss of €115 million last year, after a €22 million loss in 2006.

The Turin-based company's restructuring plan will also include a joint venture with Vincent Bolloré, the French financier, to build an electric car. Mr Bolloré is also expected to take part in the capital increase.

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