Jaguar Land Rover has begun a feasibility study into manufacturing more vehicles in India.
JLR, owned by Tata Motors, already assembles the Freelander at a plant in Pune. The Economic Times of India has learned that the company is considering further manufacturing in Pune or Sanand to produce the next generation Defender. The factory is also likely to house an engine plant.
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The newspaper said the feasibility study is expected to be completed in the second half of this year and if the plan goes ahead the new plant is likely to be ready by the middle of 2015.
ETI has been told the plant is likely to have a capacity of 30,000 to 40,000 units a year and JLR is keen to use this as an export hub with almost 60-80% of output shipped to overseas market.
JLR did not comment on the report, or the possibility of a new engine plant that will have a capacity to manufacture 50,000 units a year.
The carmaker is also planning a factory in China with local partner Chery Automobile. This is still awaiting regulatory approval from the Chinese government. The company is also exploring South America for a production base.
JLR sold 42,000 units in China in 2011 compared with 1,500 to 2,000 in India. But, unlike China, JLR sees India as an export hub with the domestic premium and luxury car market at just 23,000 to 24,000 units in 2011.
