According to reports on Bloomberg, the Coventry car maker has financial support from parent company Tata to acquire another high-end manufacturer. JLR refused to comment on the matter when contacted by Autocar.
Unnamed sources told Bloomberg that a new brand joining Jaguar and Land Rover would likely already have invested in electrification and autonomous driving systems, which will become significantly more important for the group after 2020.
JLR has pledged to electrify every model in its range from the start of the next decade and it has been working with San Francisco-based Lyft by investing in driverless technology in an attempt to increase its expertise.
As part of an aggressive push to boost global sales, JLR has launched several new models that are based on a small number of platforms. The Velar is the latest product to spawn from this system, with the Audi Q5 rival sharing much of its structure and underpinnings with the Jaguar F-Pace.