Shares in Tata Motors gained 3 per cent on Tuesday to lead the list of winners on the 50-share Nifty benchmark.
Tata Motors shares traded 2.9 per cent higher at Rs 298.10 as of 10 a.m., outperforming the broader BSE Auto index, which traded with 1 per cent gains.
Tata Motors has reported a 33 per cent slump in domestic sales in February, but investors continue to be bullish about the company's global subsidiary Jaguar Land Rover (JLR).
JLR has ridden a rise in demand for its luxury saloons and SUVs over the past two years, notably in China and other emerging markets, bucking the trend of plant shutdowns and falling production at many European automakers. It accounts for nearly all of Tata Motors' profits.
Meanwhile, JLR's chief executive said the company plans to increase investment at its UK engine plant and double employment at the site to around 1,400.
Ralf Speth told a press conference ahead of the Geneva car show the firm planned to increase investment at the plant in central England to over 500 million pounds from a previous plan of around 350 million.
The investment is part of a surge in capital spending in JLR's production facilities.
In China, for example, the company and local partner Chery Automobile are building a factory.
Company sources also told Reuters on Saturday that JLR was investigating the potential of manufacturing cars in India.
Despite its plans overseas, JLR has continually stressed its dedication to its plants in Britain, where it says it is the country's largest automotive investor in research and development.
(With inputs from Reuters)