Speculation is mounting in India that the Mahindra brothers could make a bid for Ford’s up-for-sale Volvo Car unit.

Local newspapers say that Mahindra & Mahindra (M&M) is considering a bid. Investment bank sources say the Indian firm, which lost out to local rival Tata which acquired Jaguar Land Rover, may be trying to put in a joint bid that also includes private equity participation.

Tata is considered too financially stretched digesting the JLR acquisition to add Volvo.

M&M is also said to be sounding out investment banks as potential advisers to a bid strategy.

There is also continuing speculation in China surrounding possible Chinese OEM interest in the prestige Swedish car brand, but Ford has denied that is in discussions with its Chinese partner, Changan.

Volvo Car would be seen as a key strategic acquisition for M&M, or indeed a Chinese manufacturer, taking it onto the world stage with an off-the-shelf brand with global presence.