Tata Motors will pay Ford Motor about $2.3bn for Jaguar and Land Rover and Ford will contribute up to about $600m (£300m) to the two brands’ pension plans under terms of a sale agreement announced on Wednesday.

Ford will also continue to supply the two brands with engines and transmissions, stampings and other components for differing periods, and its credit arm will provide financing for their dealers during a transitional period of up to twelve months.