Tata Motors to set up JLR plant in Saudi Arabia; stock hits 52-week high

NEW DELHI: Tata Motors Ltd rallied as much as 2.7 per cent in trade on Friday to hit its fresh 52-week high of Rs 411.30 on reports that India's largest automobile company is exploring the possibility of setting up a manufacturing plant for Jaguar and Land Rover in Saudi Arabia, the Gulf kingdom's industry minister said on Thursday.

At 09:55 a.m.; Tata Motors was trading 2.1 per cent higher at Rs 409. It hit a low of Rs 404.70 and a 52-week high of Rs 411.30 in trade today.

Addressing an India-Saudi Arabia Business Forum meeting, Saudi Arabia commerce and industry minister Tawfig Fawzan Alrabiah said the proposed plant would be the third largest for manufacturing of high-end Jaguar and Land Rover cars, said media reports.

A delegation led by Saudi Arabia’s prince visiting India confirmed this development. Tata Motors (TTMT) subsidiary Jaguar Land Rover (JLR) is undergoing feasibility to set up a manufacturing unit in the Eastern part of Saudi Arabia, Kim Eng India said in a report.

Tata Motors or JLR have not yet revealed the size of the unit and investment. JLR had recently announced setting up a unit in Brazil. It already has a unit in UK and one in China will come up by late 2014, added the report.

The research firm is of the view that this is a mild positive and confirms good demand for JLR products in different parts of the world. They maintain a BUY rating on Tata Motors.