There is suggestion that Tata Motors is looking to revive Daimler – a marque it acquired as part of a $2.3 billion Ford luxury brand purchase.
The firm has already allocated £1 billion of investment to be used in new model development at its UK sites.
It is thought the transformation of Daimler as a key competitor in the luxury brand market may form part of these development plans.
“Tata could make a very good job of this, especially if they target the space between were the top of Jaguar’s current range ends and where manufacturers such as Bentley kick in. Daimler has a fantastic heritage,” said Cardiff University analyst Garel Rhys.