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The transfer of ownership to Tata is expected to close by the end of the next quarter, subject to regulatory approvals, they said.
"We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact," Tata Chairman Ratan Tata said in a statement.
Ford would contribute up to about $600m to Jaguar/Land Rover pension plans, Tata said.
Tata, India's top bus and truck maker and its third-largest car maker, has been in talks with Ford since it was chosen as the front-runner to buy British-based Jaguar and Land Rover a few days into 2008.
Ford, which lost $2.7bn in 2007 and $12.6bn in 2006, is selling Jaguar and Land Rover to focus on turning around its loss-making operations in North America.
"Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company," Alan Mulally, Ford chief executive, said in the statement.
Shares in Tata closed down 0.1% at 679.40 rupees in a Mumbai market that fell 0.8%.
Integration:
Analysts have expressed concerns about how Tata would fund the deal, and how the global, marquee brands would fit into its stable of trucks, buses and passenger cars, including the $2500 Nano, the world's cheapest car which it plans to begin selling later this year.
Tata has announced plans to raise $4bn of funding, which is expected to help finance the Ford deal and the manufacture of the Nano, which it unveiled in January.
The deal comes at a time when the credit-market crisis has raised borrowing costs and deterred deal-making across the globe.
Standard & Poor's placed Tata on review for a possible downgrade in January from its current high-yield "BB+" rating, citing the potential increase in its debt load from the acquisition of the venerable Jaguar and Land Rover brands.
Tata Motors, which has a market value of $6.5bn, is a member of the Tata group, which comprises 98 companies in various sectors including steel, salt, software, energy, cars and trucks, communications and chemicals.
The Tata group has made a number of overseas takeovers in recent years, including last year's $13bn buy of Anglo-Dutch steelmaker Corus by Tata Steel Ltd.