Jaguar Land Rover eyes Brazil expansion: FT

Sun Jul 15, 2012 7:16pm EDT
 
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LONDON (Reuters) - Tata Motors (TAMO.NS: Quote) is in talks with Brazilian authorities about setting up a plant to assemble Jaguar Land Rover's (JLR) Freelander four-by-fours, the Financial Times reported on Monday.

Once assured that it can produce cars in sufficient volume, Jaguar Land Rover will then look at setting up a plant in Brazil, which is on track to become the world's third-biggest car market, the FT said.

"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 FT quoted JLR chief executive, Ralf Speth, as saying.

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.

(Reporting by Stephen Mangan; editing by Gunna Dickson)

 
Joseph Lau, general manager of Jaguar Land Rover Hong Kong, introduces Jaguar XJ Ultimate, the most luxurious Jaguar sedan ever made by the British automotive manufacturer with a retail price of four million Hong Kong dollars ($515,000), during a news conference at its showroom in Hong Kong May 24, 2012. REUTERS/Bobby Yip