The well-known Indian automaker Tata Motors is about to increase the range of its production capabilities with a $1 billion investment in a new factory located in Tamil Nadu, southern India. According to people with knowledge of the company’s intentions, the plant will mostly produce high-end vehicles sold under the Jaguar Land Rover (JLR) brand, according to Reuters.

Even though Tata Motors had first declared the investment in March, details about the vehicles that will be produced were not divulged. The current disclosure clarifies the company’s calculated decision to leverage its 2008 acquisition of the iconic brand to further integrate JLR into its business.

As you may remember, for the fourth quarter that ended on March 31, 2024, the Indian manufacturer also revealed a notable increase in global wholesales. With a total of 377,432 units, the number represents a significant 8% rise over the same time previous year. Of particular interest is the strong success of Tata Motors’ passenger vehicle category, which includes electric vehicles. During the same period, the company’s sales of electric vehicles increased by 15% to 155,651 units.

At the same time, Jaguar Land Rover has demonstrated an impressive growth trajectory in the Indian market. For the fiscal year 2023-24, the premium brand sold a total of 4,436 pieces, registering an impressive 81 percent rise in retail sales. This spike is especially notable because it represents the brand’s highest sales numbers in the last five years when it was first introduced to the Indian market in 2009.

The astounding rise in demand for SUVs, which has seen models like the Range Rover and Defender see year-over-year rises of 160 percent and 120 percent, respectively, is one of the main causes of this outstanding success. Furthermore, the recently released Discovery Sport model for 2024 witnessed an impressive gain of 50%, and the Range Rover Evoque saw an even more impressive annual sales increase of 55%.