Ferrari driver Felipe Massa tests his Formula One racer in Portugal this week. (AP)

Mumbai, Dec. 17: The iconic Prancing Horse may have got a fresh lease of life on the Formula 1 racing circuit after the Tatas signed a sponsorship deal with Italy’s renowned carmaker Ferrari.

The terms of the deal aren’t known but the Tata name will figure prominently on the Ferrari hot rods.

“For the first time an Indian brand will appear on the Ferrari,” Luca di Montezemolo, president of the Italian carmaker told reporters in Rome. “It’s historic.”

A Ferrari spokesperson confirmed that a deal had been reached and said the details and duration would be announced shortly.

In Mumbai, the Tatas put out a terse statement late in the evening. “Building on our existing long-term relationship of over three years, Tata Consultancy Services has entered into a historic agreement with Ferrari for an enhanced technology and marketing partnership. As part of the deal, the Tata logo will be displayed on Ferrari F1 car for the 2009 Formula One season. We will announce more details shortly,” the Tata spokesperson said.

TCS was the first Indian company to enter the Formula One arena in 2005 when it became the technology partner of Ferrari.

Tata and Ferrari’s parent company Fiat have a joint venture in India under which they produce cars.

Three years ago, TCS — India’s largest software exporter — tied up with Ferrari to provide technology support to help the carmaker test its racing cars. Under the multi-million-dollar deal, TCS was supposed to provide infotech solutions and engineering services. At that time, Michael Schumacher was still racing and was the F1 champion.

Since Schumacher’s retirement, the mantle has passed on to Lewis Hamilton who races for McLaren Mercedes.

Today’s deal will take the Tata-Ferrari relationship to the next level.

Formula One has been in trouble this year with Japanese carmaker Honda dramatically announcing plans to drop out of the grid from next year because of the global financial turmoil.

Reports said the 11 teams — each team has two cars on the grid — spent $1.6 billion in the 2008 season.

Last week, Formula One had approved a package of cost-cutting measures to help the sport after Honda pulled out of the racing event. Back in April, the Honda-backed Super Aguri dropped out of the race.

Next year, the grid will have only nine teams after the Honda pullout.

Vijay Mallya’s Force India team is the only Indian representative on the F1 circuit. It trailed in last at the end of the 2008 season and had no points on the table along with Super Aguri.

Mallya has already started to gear up for the next season. He recently scrapped his engine deal with Ferrari and opted for McLaren Mercedes from next year.

Under the agreement, McLaren will supply gearboxes, hydraulic systems and Mercedes-built engines to Force India.