Daimler is considering cooperation on sharing parts with Jaguar and Land Rover.

Dieter Zetsche, Daimler chief executive, said he could envision supplying the two brands with components, according to a report in the German trade magazine, Auto Motor und Sport.

Daimler has a 7% stake in Tata which bought the Jaguar and Land Rover brands for £1.15 billion in March.

Zetsche said: “"If Ratan Tata would approach us in regard to supplying components; we would be open to talks.” He also said that Dailmer had no plans to increase its stake in Tata.

Zetsche added that Daimler would make a decision before the end of June to build a new production site for it’s A-class and B-class compact cars in Eastern Europe.