Jaguar Land Rover eyes Brazil expansion with new factory image

Jaguar Land Rover plans to assemble Freelander suvs in Brazil as a first step towards full local production of cars in South America’s largest economy.

The company plans to export “kits” to assemble the Freelander model in Brazil.

Mr. Ralf Speth, Chief Executive Officer, JLR, was quoted as saying, “We thought about setting up a plant or assembly line, but you need a critical mass of volume. Therefore, we are talking to government about how this kind of step can be made for a small company like us.”

“The whole strategy that Tata had when they bought Jaguar and later Land Rover was to aim at the whole emerging market … a strategic plan that was actually the only reason for this acquisition in the first place,” BNP Paribas head of international coverage Guido van Hauwermeiren said.

While most big mass-market carmakers have plants in Brazil, premium producers are only now eyeing the market to tap into growing luxury vehicle sales and avoid steep taxes on imported cars.

Germany’s BMW has been in talks with Brazilian authorities about setting up what would be South America’s first greenfield premium car plant, but has taken no decision yet.

The British luxury brand, which Tata bought for $2.3 billion in 2008, produces the bulk of its cars at three plants in England.
JLR’s growth in overseas markets has helped insulate Tata from a sluggish domestic car market which grew just 2.2 percent in the last financial year.

Sales of luxury brands from Jaguar Land Rover were at 28,215 units in June, up 39 percent from the same month last year, Tata Motors said in a statement.