Jaguar Land Rover, the luxury-vehicle division of India’s Tata Motors Ltd., signed an agreement to build a $392 million factory in Brazil with capacity to produce as many as 24,000 cars a year, Bloomberg reported.

Construction of the plant in Itatiaia, in the state of Rio de Janeiro, will begin in mid-2014, the Gaydon, England-based division said in a statement. The first cars will roll off the production line in 2016, subject to final approval of the plans by the Brazilian federal government.

Lured by the prospect of Brazilian luxury-auto sales tripling by 2017, Jaguar Land Rover is joining global industry leaders BMW, Audi and Mercedes-Benz in planning car production in the country, South America’s largest economy. Jaguar Land Rover, which Mumbai-based Tata Motors bought from Ford Motor Co. in 2008, is turning to emerging markets to pursue growth as sales gains slow in developed economies.

Jaguar Land Rover sold 346,935 vehicles worldwide in the 10 months through October, an increase of 18 percent from a year earlier, spurred by growth of 27 percent growth in China, and more than 40 percent in Brazil. The company’s top-selling model was the Range Rover Evoque, while the Jaguar XF sedan was the best-selling car.