Tata Motors (NYSE: TTM) is the country’s dominant producer of commercial vehicles and controls 60 percent of the market. The company is also a leading manufacturer of passenger cars in India and owns the Jaguar Land Rover (JLR) brand of luxury cars and sport utility vehicles.

Tata Motors reported 41 percent growth in sales volumes in November. The company sold 76,823 total units, of which its low-cost Nano passenger car accounted for 6,400 units. The Nano, which was marketed as the world’s smallest and most affordable car, was greeted with great fanfare during its launch. The company spent about USD600 million to develop and manufacture the product and the returns on this investment have disappointed. However, the recent sales figures for the Nano are encouraging.

Tata Motors’ JLR division has meanwhile posted strong growth. Tata Motors acquired JLR from Ford Motor Company (NYSE: F) in 2008 for about USD2.3 billion. Although Tata Motors was criticized at the time for overpaying, JLR has proved to be a good acquisition. JLR now accounts for about 55 percent of Tata Motors’ revenues and more than 60 percent of earnings before interest, tax, depreciation and amortization (EBITDA).

China remains JLR’s main target market for future growth, and this year the company has doubled its JLR dealerships in the country to 100. China currently contributes about 17 percent to JLR’s revenues, up from just 5 percent in 2009. Profit margins are higher in China than they are in Europe or the US because there are fewer buyer incentives for mainland consumers. Nevertheless, Europe remains the world’s largest luxury car market, with a share of about 46 percent.

Tata Motors’ Indian volume sales rose 41 percent year over year last month. The domestic business currently contributes about 40 percent to revenues and 28 percent to the company’s EBITDA.

Tata Motors’ stock currently trades at levels more than 50 percent off its high at the end of 2010. Although valuations are supportive, they’re not yet at rock bottom. Investors should purchase shares of Tata Motors at current levels, while recognizing that this is a high-growth, high-beta stock. Tata Motors, a new addition to the Long-Term Growth Portfolio, is a buy up to USD18.

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