Ford Says 'Tata' to Jaguar, Land Rover

The sale raises the Tata conglomerate's profile on the world stage, said V.G. Ramakrishnan, the lead auto analyst with the consulting firm Frost and Sullivan India.

"It gives them a much better branding image in the global market," Ramakrishnan said. "This is another important landmark step of showcasing that Indian companies are arriving on the global landscape. Many people will see this deal as the future of things to come you will see more companies out of India acquiring global companies. They want to be seen as major global players."

Tata Motors built the first fully Indian-designed car. In contrast to the high prices that Jaguars and Land Rovers sell for, Tata recently announced plans to build a $2,500 car later this year.

Ford CEO Alan Mulally said in a statement that the British brands are leaving Ford in good shape.

"Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all."

Tata said in its statement Ford will continue to supply engines, transmissions and other components "for differing periods." Ford also will continue to provide environmental and other technologies as well as engineering support.

Tata Chairman Ratan N. Tata said his company will try to build on the brands' heritage, keeping their identities intact.

"We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business," he said in a statement.

Roger Maddison, an official with Unite, Jaguar and Land Rover's main labor union, said the deal is good news for the automakers' employees as well as those who work for parts suppliers.

"Unite has secured written guarantees for all five UK plants on staffing levels, employee terms and conditions, including pensions, and sourcing agreements. The sale ensures our members futures and we look forward to working with Tata," Maddison said in a statement.