Tata has started work on reducing emissions from the Jaguar and Land Rover brands to help them comply with future European Union CO2 emissions limits.

Tata Motors managing director, Ravi Kant, told the Times of India that measures were underway. A spokesperson for the brands said that an 18% reduction in fleet CO2 emissions was expected over the next few years.

No company publishes overall average fleet CO2 emissions but according to independent calculations Jaguar's average emissions in the UK were almost 200g/km in 2007 and Land Rover's were 250g/km. Not surprisingly these are at the top end of the scale compared to small car brands such as Fiat (142g/km). The EU legislation is targeting overall average fleet CO2 emissions of 130g/km by 2012, down from 160g/km in 2007.

One of the reasons that Ford sold Jaguar and Land Rover is the fact that the brands will struggle to meet future limits, but according to the Times of India, the companies are planning to invest £700m in developing new environmental technologies and introduce new manufacturing materials.

"A whole lot of technologies are being worked out that include biofuels and hybrids . Apart from that, we are looking at getting in lightweight structure for manufacturing our cars, further developing on Jaguar's expertise in aluminium body structures," a spokesperson told the Indian newspaper.