FIAT has its eyes on technology developed by Jaguar and Land Rover and hopes to use it in Alfa Romeos and Maseratis.

Ford, which owns the two British marques, is in talks to sell them to Tata, the Indian conglomerate. Tata collaborates extensively with Fiat, with several joint ventures in India including vehicle and engine production, and a shared dealer network.

Sergio Marchionne, Fiat’s chief executive, told The Sunday Times last week he hoped Tata would be successful in acquiring Jaguar and Land Rover.

Marchionne said Fiat’s close association with Tata would make it possible to share Jaguar’s rear-wheel drive chassis platforms and Land Rover’s four-wheel drive systems. The first application would be a new flagship model for Alfa Romeo.

Fiat evaluated the two British premium car brands when Ford put them up for sale last year, but decided not to bid.

Marchionne said Fiat was open to expanding its relationship with Tata into Europe – where Tata sells cars in only a few countries – and that it would “look at the possibilities” for European distribution of the recently launched Tata Nano, which will sell for £1,225 in India.

The Fiat chief has presided over a remarkable turnround at Fiat. Last week he received the Car of the Year trophy for the new Fiat 500. He announced that production of this model, for which 140,000 orders have been received, will be increased from the planned volume of 120,000 a year to 190,000.

From the end of this year, the new Ford Ka will be built alongside the 500 at the Fiat plant in Tychy, Poland. Marchionne is adamant that although they will be the same technically, the 500 and Ka will present an entirely different image to the public.

The possibility of Tata sharing some of its newly acquired technology could answer analysts’ concerns about how it will handle Jaguar. Land Rover’s SUVs look a good fit with Tata’s existing range but the Indians have no experience with luxury saloons and sports cars.

Times Recommends

• Equitable Life halts £7bn sale on market turmoil
• Potential buyers emerge to save Woolworths staff
• Terrorist attacks close Bombay Stock Exchange