India's Tata seen making big technical leap with Jaguar purchase

0 Comments | AFP, January, 2008

NEW DELHI (AFP) — India's Tata Motors, named preferred bidder to buy Ford's Jaguar and Land Rover units, could make a huge technological leap and save years of development by acquiring the car icons, analysts said Friday.

The ailing US automaker announced on Thursday it had entered "detailed talks" with Tata Motors, part of India's sprawling tea-to-steel Tata Group, for the sale of the luxury marques.

"From a technology point of view and given the Tatas' global ambitions, this purchase would make a lot of sense," said Chirag Shah, research analyst at Mumbai's Emkay Securities.

"If they (Tata Motors) want to move into the league of the VWs and the Audis, they need to make these kinds of investments," Shah said.

"They -- in fact the Indian auto players...