Are Tata Motors, M&M fancying Jaguar, Land Rover?

Tata Motors may be evaluating a possibility to bid for Land Rover and Jaguar, which are part of Ford's loss making Premier Automotive Group, reports CNBC-TV18.

Jaguar stands for power and speed, and Land Rover stands for pure strength. Tata is reportedly evaluating a possible bid for these brands. Analysts said that both are valued together at USD 1.5 billion.

But Tata Motors' MD Ravi Kant's silence does little to make matters clear.

Though the Tatas stayed silent, rival Mahindra and Mahindra, or M&M, which could have an interest, at least, in Land Rover, says the brand is attractive. Even so, it will not help Mahindra become an independent global sports utility vehicle, or SUV, brand. Moreover, Land Rover, which is about six times as big as M&M, might simply be unaffordable.

“I do not know what is on offer, whether it is the whole brand, or some products or what plants are being offered. I cannot say if it is a strategic fit or not. Mahindra is a SUV brand and Land Rover is an SUV brand. So, the two brands have something where synergy is possible. But having said that, its a big company,” said Pawan Goenka, President-Automotive Sector, M&M.

It is being debated whether it will make sense for Tata Motors, which is trying to grow in Europe, and be worthwhile to pursue this opportunity.

That is probably what company officials could be deliberating now, especially when Tata Motors is putting its weight behind the Rs 1-lakh car project.