Tata Motors Ltd, India's biggest vehicle maker, expects sales and operating margins to improve in the second half of the fiscal year, but is wary of a weaker dollar and growing competition, a top official said.

Tata Motors, the leading bus and truck maker, is doing more to manage costs and is better protected from cyclicality because of a broader portfolio now, Chief Financial Officer C. Ramakrishnan told Reuters in an interview on Wednesday.

H2 sales are usually better, and we are definitely seeing signs of a revival on the expectation that interest rates will soften, he said.

But the true cause for concern is the competitiveness of our exports because of a weaker dollar, he said.

Tata Motors has expressed an interest in Ford Motor Co's Jaguar and Land Rover luxury brands, and is on the shortlist with two other bidders including rival Mahindra & Mahindra Ltd, sources have told Reuters.

Ramakrishnan declined to comment on the deal.