Both companies stated the bids were ‘nothing more than initial expression of interest’.
M&M is likely to fund a deal with a private equity partner, while Tata may do the same or partner with Fiat, according to industry analysts.
Fiat, on its own, had reportedly turned down Ford’s offer for the two brands. Apart from the Indian auto companies, private equity players Cerberus Capital Management, Ripplewood Holdings and One Equity Partners are the other likely bidders.
Last month Ford announced that it was working with financial advisors on various options for its Premier Automotive Group division, which includes Volvo, Jaguar and Land Rover.