Jaguar Land Rover, which Tata bought from Ford in 2008 for $2.5 billion, sold 57,153 vehicles in the last quarter compared with 35,947 a year earlier, Tata Motors said in a statement in Mumbai yesterday. Demand "continues to be strong" and the company is talking to suppliers about meeting its requirements, Jaguar Land Rover said in an e-mailed statement.

"We could produce more if we have engines," Forster said in Mumbai yesterday. The former European head of General Motors Co. joined Tata Motors earlier this year. The automaker also plans to develop new types of engines on its own.

Tata Motors can purchase engines for Jaguar cars and Land Rover SUVs from Ford until 2019, according to the terms of the takeover, Debasis Ray, a spokesman for the Indian truckmaker, said in an interview.

Tata Motors climbed as much as 6.3 percent to 1,017.8 rupees in Mumbai, the highest level since at least January 1991, according to data compiled by Bloomberg. The stock changed hands at 1,005.35 rupees at 9:30 a.m. The shares have gained 27 percent this year, the second-best performance in the benchmark Sensex Index, which has advanced 4.4 percent.

American depositary receipts of Tata climbed in New York composite trading to a record $20.67. That's the highest since the company began trading in the U.S. in September 2004, according to data compiled by Bloomberg.

Eoin Treacy's view Last night's Fed statement intimating that they intend to continue to expand their quantitative easing program can be viewed from a number of angles. The first is that the USA has not yet entered a self-sustaining period of economic expansion so things might be worse than many had expected. This reaction is reflected at least in part by today's pullback across equity markets which is following an impressive advance and from a somewhat overbought condition.

Another way to look at this development is that US monetary conditions are likely to remain very accommodative for a while longer. This excess capital creation will invariably find its way to the most productive assets which in today's two-tier global economy are leveraged to growth stemming from the expansion of Asia's middle classes. While stocks whose businesses focus on domestic markets in the USA and Europe may continue to struggle, internationally diversified businesses are thriving. Many, particularly in Asia, have become somewhat overextended relative to their 200-day MAs but provided they find support in the region of their means, any significant pullback can be viewed as a buying opportunity.

Tata Motors is a case in point. It surged this week to new highs on positive earnings, but is becoming increasingly overextended relative to the mean. While is has yet to show any sign of supply dominance, the likelihood of a mean reversion has risen considerably. The medium-term outlook for the company remains positive and it will be best bought on pullbacks.