Jaguar Land Rover parent company Tata Motors is understood to be talking to PSA Peugeot Citroën about the possibility of co-operating long term. Peugeot instigated the talks, initially with a number of firms. Tata is now the front runner in negotiations.
An agreement is likely to lead to the manufacturers sharing platforms and engines in the future. Peugeot is keen to re-enter the Indian market after an absence of 15 years, and Tata has spare capacity at its Sanand plant in Gujarat. It is believed that Peugeot is interested in manufacturing the 208, 308 and 3008 models in India.
PSA has stated its intention to have a strategy in place by 2015, with its boss Carlos Tavares keen to establish his plans for the Indian market. Expansion plans for Jaguar and Land Rover are unlikely to be affected, with a factory in Slovakia in the pipeline as well as increased capacity in the UK.
Both parties have previously collaborated successfully with other manufacturers, to benefit from increased production efficiency and develop new powertrains. We expect to hear confirmation of an official agreement by the end of 2015. To follow this story and keep up to date with the latest news from Jaguar, be sure to check our news feed regularly.