India's Tata Motors is planning to manufacture Jaguar Land Rover (JLR) luxury cars at a $1 billion plant that it is planning to build in the southern state of Tamil Nadu, two sources with direct knowledge of the plans said.

Tata Motors announced plans to invest in a new plant in Tamil Nadu in March but did not give details on which models would be manufactured there.

The sources were not authorised to speak to media and declined to comment.

It was not immediately clear which JLR models will be built at the factory.

Tata Motors, which acquired JLR in 2008, said it did not comment on what it called speculation.

(Reporting by Shivangi Acharya, Aditya Kalra and Aditi Shah; Editing by Edwina Gibbs)