Ford Motor Company has confirmed it has sold its luxury UK-based car brands Jaguar and Land Rover to Indian car giant Tata Motors.

The transfer of ownership to Tata, India's biggest vehicle maker, is expected to close by the end of the next quarter, subject to applicable regulatory approvals.

The total amount to be paid in cash by Tata for the British brands upon closing will be approximately $2.3bn.

Under the terms of the agreement, Ford will also contribute about $600m to the Jaguar and Land Rover pension plans.

"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," Tata said.

"We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, 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."

Alan Mulally, president and chief executive of Ford, said he believed both brands would continue to flourish under Tata's guidance.

"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," he added.

Earlier this year, Tata unveiled the world's cheapest car at the 9th Auto Expo in New Delhi.

The car, called the Tata Nano, will sell for just 100,000 rupees or $2,500.

The article Tata pays $2.3bn for Jaguar originally appeared on 999 Today