PE firm TPG joins race for Jaguar, Land Rover

The race to bag Jaguar and Land Rover is heating up with another private equity firm, TPG of America joining the fray. Jaguar may have the marquee glamour but the Land Rover's sales performance could be the real attraction, reports CNBC-TV18.

Its a real life car chase in which speed and glamour are not always as attractive as size. That seems evident in the chase for Jaguar and Land Rover, in which Indian companies Tata Motors and Mahindra & Mahindra are apparently interested.

Their interest would be more in sport utility vehicle, or SUV, maker Land Rover, because they are utility vehicle makers who want to expand capabilities in that space. A Land Rover could do wonders for them. But for private equity firms too, it could be the same attraction.

During the first six months, Jaguar sold 21% less than it did a year earlier, while Land Rover's sales were up 8%, making it reportedly the best first half performance in its history. Its sales in West Asia, a key market for SUVs has grown 18% in those six months.

Besides, Land Rover already has a distributor in India, with sales of 150 units a year. But the picture of bidders could get clearer on the July 26, when Ford is expected to take the bidding process, to the next level of due diligence, after announcing its second quarter results.