Tata Motors is in talks with Brazilian authorities about setting up a plant to assemble Jaguar Land Rover's (JLR) Freelander four-by-fours, the Financial Times reported on Monday.
Once assured that it can produce cars in sufficient volume, Jaguar Land Rover will then look at setting up a plant in Brazil, which is on track to become the world's third-biggest car market, the report said.
"We thought about setting up a plant or assembly line, but you need a critical mass of volume. Therefore, we are talking to government about how this kind of step can be made for a small company like us," the FT quoted JLR chief executive, Ralf Speth, as saying.
The British luxury brand, which Tata bought for $2.3 billion in 2008, produces the bulk of its cars at three plants in England.
JLR's growth in overseas markets has helped insulate Tata from a sluggish domestic car market which grew just 2.2% in the last financial year.