India's Mahindra & Mahindra group, the world's biggest tractor manufacturer, is the frontrunner in a bidding war to buy a large stake in flashy British sportscar maker Aston Martin, which is owned by Kuwait-based finance firm Investment Dar, a report said.

Mahindra & Mahindra is likely to pick up a 40 per cent stake in the British manufacturer, whose vehicles feature regularly in James Bond movies, for about $190-320 million, The Economic Times reported.

The newspaper said Mahindra, which makes jeeps along with tractors, is set to pip the other serious bidder, Italian group Investindustrial which owns a stake in motorbike maker Ducati.

"Discussions are still fluid. We are expecting the deal to get closed this week," the report said, quoting an official.

If Mahindra succeeds, it would be second time an Indian company has snapped up a famous name in British motoring in recent years. Tata Motors bought Jaguar and Land Rover from Ford Motor in 2008 for $2.3 billion and has overseen a revival in the group's fortunes on the back of strong sales in Asia.

After an initial acquisition of 40 per cent, Mahindra is looking at raising its stake to 50 per cent,in Aston Martin over the next four years.-Reuters