Is Tata Motors close to buying out Jaguar, Land Rover?

If Tata Motors manages to pull off this deal, it will take the company to a different league altogether in the global automotive market because these two brands though struggling financially, are very prestigious brands.

Land Rover is the second oldest brand after Jeep, in terms of SUV brands. Jaguar in itself is very niche.

Land Rover, compared to the Jaguar, is performing better in the market in the first six months of this year. Land Rover's global sales were the best ever in terms of the first-half in its nearly 60 years old history. Jaguar, though, is facing some tough times.

But that is something the winning bidder would have done some homework about; in terms of how to revive that brand as well. There will be lot of rub-off effects that will be felt in the entire organisation. 

Jaguar's strength lies in suspension and chassis development. Jaguar till 2-3 years back was also present in the formula-one scenario.  Land Rover brings in very top-end technology in terms of off-road vehicles.  That is something that Tatas are working out to enhance their R&D capabilities. Last year, they acquired a design and engineering services in UK and the acquisition of these two brands will enhance the company's R&D capabilities, which will reflect in its new products. Ratan Tata had said that the next two years would be the most active years in the Tata Motors' history in terms of product development and enhancement of R&D capabilities.

The actual funding model is difficult to say at this point. But the company might look at raising money in the international market for various activities, which may include some inorganic growth activities.