Confirmation of the sale from US motoring giant Ford came today.

Tata, part of the global business Tata Group, has committed itself to preserving the individuality of the marques as part of the deal which will safeguard around 16,000 jobs.

Ford said the sale is expected to be concluded by the end of June and it would then contribute up to about £300 million to the Jaguar and Land Rover pension plans.

Ford Motor Company president and chief executive Alan Mulally said: "Jaguar and Land Rover are terrific brands.

"We are confident they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong company that delivers profitable growth for all."

Lewis Booth, Ford's executive vice president, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover, said: "This is a good agreement. It provides the Jaguar Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results for the business.

"I am confident that, under its new owner, Jaguar Land Rover will continue to build upon the significant improvements and product successes it has achieved in recent years."

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

As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies.

Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.

In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.

Unions have said they accept the deal as the best that was available.

Tony Woodley, joint general secretary of the Unite union, said today: "We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable.

"But with the commitments Tata have given to the future of Jaguar (and) Land Rover and the long-term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game."

Based at Solihull in the West Midlands and celebrating its 60th anniversary this year, Land Rover has proved a profitable part of Ford's empire since the American company took it over in 2000.

As a company name, Jaguar, which cannot match Land Rover's current profitability, dates from 1945 and has plants at Castle Bromwich in the Midlands and at Halewood, Merseyside. Famous models have included the E-type and the long-running XJ series.

The takeover means some of the most famous old British motoring names are in foreign hands, as BMW of Germany owns Mini and Rolls-Royce, while another German company, Volkswagen, is in charge of Bentley.

But record numbers of cars were built in the UK last year for export to other countries.

The Society of Motor Manufacturers and Traders (SMMT) said 1.5 million cars were produced in the UK in 2007, a 6.4 per cent increase on the previous year, of which 1.1 million were sold overseas, a rise of 7.2 per cent.

The UK is now making nearly twice as many cars as 25 years ago.

Tata, which is based in Mumbai and includes tea company Tetley and steelmaker Corus among its portfolio, has 98 operating companies across seven business sectors and employs 289,000 people in more than 80 countries.

It was founded in 1868, with revenues in 2006/6 at around £14 billion.