Suppliers to Jaguar and Land Rover must not be complacent if they want to carry on working with their new owners, Birmingham business chiefs have warned.
Jaguar employs thousands of staff in Coventry and Castle Bromwich
Car giant Ford has sold its luxury UK- based brands to India's biggest vehicle maker, Tata, for $2.3bn (£1.15bn).
Jaguar and Land Rover employ several thousand workers in the West Midlands.
But the Birmingham Chamber of Commerce and Industry said Tata would want to deal with suppliers "who can compete with the rest of the world".
"This means that suppliers to Jaguar and Land Rover, many of whom are located in the West Midlands, will need to develop their products," he added.
"It is no longer good enough to provide the best quality product at the most competitive price. These are now the norm.
"JLR expects leading-edge innovation and research and development to be part of the package. It is here where some suppliers have most to do."
Jaguar has about 10,000 staff in Coventry, Castle Bromwich and Halewood while Land Rover employs about 9,000 in the West Midlands and Warwickshire.
Land Rover has remained profitable since Ford bought it
Although Land Rover remains profitable, Ford has never managed to make money from its investment in Jaguar.
A spokesman for EEF West Midlands, the region's largest employers' association, said all workers would be relieved that rumours and speculation about the two firms would now end and called for stability for the brands.
"Reports that Tata group will stick to the existing five year plan to invest in and develop the two businesses will also be welcomed by all," said Ian Smith, EEF's chief executive.
"The one thing both Jaguar and Land Rover require now is stability where they are allowed to plan for the future."