New Delhi: Tata Motors owned JaguarLand Rover has entered into an agreement with the state of Rio de Janeiro to build a manufacturing plant in Brazil with an investment of $750 million (Rs 4,626 crore).
The plant will have annual production of 24,000 vehicles. The construction of the manufacturing facility will commence in mid-2014 with the first vehicle rolling off the assembly line in 2016, subject to the final approval of the plans from the Brazilian Federal Government under its Inovar-auto Programme.
The facility will be based in the City of Itatiaia, will initially employ 400 people and generate additional jobs in the supply chain. The direct employment is likely to double by the end of the decade
Jaguar Land Rover's planned expansion into Brazil is the next major step in the company's strategy to increase its global manufacturing footprint and create additional capacity. This new facility will play an important role in supporting the significant growth opportunity identified in Brazil and across other South American markets, said the company in a statement on Thursday.
Ralf Speth, CEO of Jaguar Land Rover, said, "Brazil and the surrounding regions are very important. Customers there have an increasing appetite for highly capable premium products. This new programme will enable us to bring exciting new vehicles to them, with outstanding British design and engineering, creating a world-class Jaguar Land Rover facility incorporating leading premium manufacturing technologies."
The plant once comes up will be the second significant manufacturing base, outside of United Kingdom for Jaguar Land Rover. Last year, the company entered the Chinese market with a joint venture with Chery Automobile Company and the manufacturing plant is already under construction in Changshu, China.
In the past, the company has conducted feasibility studies to set up a plant in India too and it is also in talks with the Saudi Arabian Government to set up a plant in that country for a base in Middle East.
Jaguar Land Rover plans to invest £2.75bn in its products and facilities in the FY-2014.
Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Its national sales company is based in Sao Paulo, employing almost 100 people. There are currently 35 dealers across Brazil with further expansion planned in the next year.
So far in 2013, Jaguar Land Rover sales in Brazil have increased by more than 40% to 9,549 vehicles over the 10 month period. The best-selling models in Brazil are Range Rover Evoque, Freelander and Discovery.
Following a detailed feasibility study, Jaguar Land Rover selected the City of Itatiaia, close to the heart of the emerging Regional Automotive Zone, due to its excellent logistics links, access to the local supplier base and skilled workforce.
Sergio Cabral, Governor of Rio de Janeiro State said, ""We offer perfect conditions to JLR to install its plant in Brazil, as we have an automotive hub in the South Fluminense region that concentrates qualified labor and important suppliers. It is a privilege to welcome this great group, with an estimated investment of up to R$750 million and we are confident that this agreement will bring to Brazil extraordinary results"".
Jaguar Land Rover has three advanced manufacturing facilities in the UK and is building its first state of the art advanced engine facility at i54 South Staffordshire Business Park investing more than £500m and creating almost 1,400 new jobs.
The company employs more than 26,000 people and sells vehicles in 176 countries around the world. More than 80% of our business is exported. Over the last two years it has recruited over 9,000 people.
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