Tata Motors Limited’s Jaguar Land Rover unit has inaugurated a new factory in Brazil. This is the luxury carmaker’s first fully owned facility outside the U.K.

The plant has a production capacity of 24,000 units. However, the company plans to produce less than 10,000 units here in 2016. Jaguar Land Rover will manufacture the Land Rover Discovery Sport and Range Rover Evoque SUVs at the facility. The vehicles produced here will be sold in Brazil.

The new plant is aimed at boosting local sourcing of components. It will acquire parts such as seats, chassis and powertrain assembly from local suppliers in Brazil. This will help combat the impact of changes in foreign currencies on the company’s earnings.

Jaguar Land Rover reported an 11% rise in sales in Brazil, in the first five months of 2016.

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Tata Motors is one of the leading automotive manufacturers in India. The company has operations in the U.K., South Korea, Thailand, South Africa and Indonesia.

Currently, Tata Motors carries a Zacks Rank #5 (Strong Sell). Some better-ranked automobile stocks include Autoliv, Inc. (ALV Quick QuoteALV - Free Report) , Oshkosh Corporation (OSK Quick QuoteOSK - Free Report) and Superior Industries International, Inc. (SUP Quick QuoteSUP - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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