Commerce and Industry Minister Tawfiq Al-Rabiah announced on Thursday that Tata Motors, India’s largest automobile company, has shown interest to set up a manufacturing plant for Jaguar and Land Rover in the eastern part of Saudi Arabia.

Addressing the Saudi-Indian Business Forum in New Delhi jointly organized by the Federation of Indian Chambers of Commerce and Industry and the Council of Saudi Chambers, Al-Rabiah said the proposed plant would be the third largest for manufacturing Jaguar and Land Rover.

Speaking to Arab News from New Delhi, Abdul Rahman Al-Rabeeah, president of the Saudi-Indian Business Council (SIBC), highlighted the significance of the Tata Group opening its car manufacturing plant in Saudi Arabia. “Talks are in progress to set up the plant,” he added.

Representatives of the Ministry of Commerce and Industry and the Indian auto manufacturing giant had already signed a ‘Letter of Intent’ to set up the plant in December 2012. Tata wants to benefit from the multibillion dollar aluminum complex currently being built in Ras Al-Khair.

Speaking at the business forum, Al-Rabiah said other Tata companies including Tata Consultancy Services and Tata Steel are also having significant business engagements with Saudi Arabia and have shown commitment to expand it further. Tata Steel won an order last year to supply high-quality rails for a new high-speed rail line linking the two Holy Cities of Makkah and Madinah, the minister said.

The SIBC chief said the forum witnessed the signing of four agreements in engineering, shipping, food and industry sectors.

“Bilateral trade volumes between the two countries have touched $43 billion and both sides are keen to expand trade ties. Saudi Arabia is also India’s largest crude oil supplier accounting for about one-fifth of total imports in 2012-13,” he said.