Tata's acquisition of Jaguar and Land Rover is part of the firm's strategy to break into developed markets around the globe, sources said last night.
The Indian industrial giant will be named as the preferred bidder for Jaguar and Land Rover tomorrow.
Tata has had its £1 billion bid accepted by Ford - which is selling the two luxury carmakers together - the employers of 13,320 people across the Midlands.
While Tata refused to comment on the sale yesterday, the firm did say it was keen to expand into other markets around the world.
A spokesman said: "When one market is at its peak, another is in a trough. It is important to be in different markets to reduce risk."
The firm has beaten off competition from rival Indian firm Mahindra and Mahindra and private equity group One Equity Partners.
Final negotiations are expected to be completed in the next six weeks before the sale is completed. Sources at Land Rover said yesterday: "It is definitely Tata.
"There is one final meeting and so long as there are no last minute hitches, which are not expected, then an announcement will be made on Friday."
Officials are coming to the UK from India for the announcement, and the deal will be worth around £1 billion.
Staff and the Government are all supportive of the deal, the source added, while it will ensure the companies and the jobs stay in the West Midlands.
The news was welcomed by union leaders last night.
Des Quinn, industry officer for the Transport and General Workers' Union section of Unite, said: "We cautiously welcome this development, although the devil will be in the detail.
"We thought the Tata bid was in the best interests of our members.
"They come from a manufacturing background, and the experience of other people they have taken over has been good.
"They allow the management to manage and are investing in it.
"They are cash rich and they can afford the price, as well as invest in the future.
"Generally we think they are the better buyer for Jaguar and Land Rover."
Earlier this year Tata bought Corus for £4.3 billion, while the firm also owns Tetley Tea in the UK.
Mr Quinn added that the Mahindra bid fell down because of its links to private equity.
"When a private equity firm buys a company, the cost of buying it often goes onto the companies books.
"If anything then goes wrong how do you refinance the business?"
Tata also seemed more committed to both brands, rather than Mahindra which is thought to be predominantly interested in Land Rover because of its own 4x4 roots.
There were doubts about how long a private equity buyer would keep the two companies, before selling them on again, added Mr Quinn.
"One Equity said they had some long term investments, but in private equity that is not the normal route."
Ford bought Jaguar in 1989 for £1.6 billion and paid £1.7 billion for Land Rover in 2000.
However, its Premier Automotive Group, which includes the two brands, lost £166 million last year.
A spokesman for Ford said: "No final decision has been made. We are still in negotiations with the interested parties.
"We expect an outcome early next year at the latest and can add nothing more at this time."
How Tata is covering all the motor market angles
From ultra low cost cars aimed at the Indian poor to the latest Jaguars and Land Rovers, Manufacturing Editor John Revill looks at Tata Motors
Go to India, and you will see Tata vehicles everywhere - there are more than four million trucks, vans and cars on its roads.
But if Tata is successful in its audacious bid for Jaguar and Land Rover, it will be a quantum leap for the firm and give it one of the widest product ranges on the planet.
At the entry level it will have the socalled 'People's Car', the ultra low-cost vehicle it is launching for the Indian market next year.
Dubbed the One Lakh Car - from its original target price of 100,000 rupees or just under £1,300 - the vehicle will be formally unveiled at Auto Expo in Delhi on January 10.
At the other end of the scale, the company will be the ultimate producer of Jaguars and Land Rovers - beloved by politicians, celebrities and royalty and costing up to £75,000.
The firm, part of the giant Tata industrial conglomerate, only started making cars in 1998 when it launched the Indica, the first entirely Indian designed and built vehicle.
Since then it has increased its grown rapidly. Last year its car sales increased it sales by 21 per cent last year to 228,220 units, the highest ever by the company.
Tata has 16.4 per cent of the Indian market, making it second only to Suzuki in India, a figure which is expected to rise with the People's Car.
The ambitious company, part of the giant Tata Group, was originally set up to produce locomotive engines in 1945.
The firm added commercial vehicle manufacture in 1954, and then the Tata Sierra SUV - in 1991.
The company now has five main product lines, the Indica, the Indigo saloon car, the Indigo estate car, the Sumo multi utility vehicle and the the Safari SUV.
They are all produced by its 22,000 staff at its four plants across India - in Pune, Jharkand, Lucknow and Pantnagar.
Headquartered in Mumbai, the firm is also rapidly expanding its production with the addition of two more plants next year at Signur in West Bengal and Dharwab in Karnatka state.
Car exports grew seven per cent to 53,474 last year, with most of the sales going into South Africa, followed by Turkey, Spain and Italy.
A spokesman for Tata Motors said the firm had ambitions to increase its overseas sales in the coming years. "If you look at the auto industry around the world, each country has peaks and troughs.
"We want to be in sectors which are less cyclical and in more markets. If we are in different markets around the world, it will reduce the risk. It is important to be in several international markets."
The backbone of Tata motors though is its commercial vehicle arm, which increased its sales by 39 per cent to 298,600 units, the highest ever of the company.
This makes it the world's fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer.
But the firm has also been looking to work with overseas partners.
It has an industrial joint venture with Fiat in India to manufacture passenger cars, engines and transmissions for the Indian and overseas markets; Tata Motors also has an agreement with Fiat to build a pick-up vehicle at Córdoba, Argentina.
The company already distributes Fiat-branded cars in India.
Tata Motors' international footprint include Tata Daewoo Commercial Vehicle Company in South Korea; Hispano Carrocera, a bus and coach manufacturer of Spain in which the company has a 21 per cent stake; a joint venture with Marcopolo, the Brazil-based body-builder of buses and coaches; and a joint venture with Thonburi Automotive Assembly Plant Company to manufacture and market pickup vehicles in Thailand.
In the year to March 31, 2007, Tata Motors increased it sales by 36 per cent to £4.679 billion while pretax profits rose 32 per cent to £297.3 million.
The Tata spokesman added: "We only started making cars in 1998, but in only nine years we are already the second biggest producer in India."