The sale of Land Rover and Jaguar to Indian company, Tata, has been confirmed today.

The deal sees current owner, Ford, receive £1.15bn for the two prestige brands. In return the floundering American automotive giant has agreed to pump £300m into the two companies’ pension funds.

It looks likely that car and 4×4 production will remain in the UK for the foreseeable future.

Tata – which also owns Tetley Tea and Corus Steel – has assured the 18,000-strong workforce of both brands that it does not anticipate job cuts and that current production plans will remain in place until at least 2011.

However industry speculators are concerned that after this date the company could look to streamline costs by moving component sourcing and vehicle assembly abroad.

In India, Tata dominates the automotive market with over half of the country’s truck sales and 17% of the car market.

Earlier this year the company unveiled its £1000 Nano, billed as the world’s cheapest mass-produced car.

UK farmers will know the brand better for its Peugeot-powered pick-ups that sold well through the mid 1990s.

As the world’s third largest car maker, Ford is selling Land Rover and Jaguar to help recoup the £7.65bn of losses it has sustained in the last two years. It says doing so will allow it to concentrate on its core operations in the US.