Jaguar Land Rover is investing around about BRL1 billion ($436.9 million) to construct a new manufacturing site in the city of Itatiaia, state of Rio de Janeiro, Brazil, three government sources told Reuters. One of the sources disclosed that Jaguar Land Rover will announce the investment on December 3, with output seen to commence as early as 2015.
"Everything is very advanced with only minor details to be worked out," Itatiaia mayor Luiz Carlos Ferreira Bastos told Reuters, adding that the site could employ 500 to 700 people. The two other sources, connected to Rio de Janeiro's state government, confirmed that the carmaker is planning to build in Itatiaia. Earlier this month, Jaguar Land Rover disclosed plans to expand manufacturing and increase output in markets outside the United Kingdom, particularly in China and Brazil.
The move comes as rivals BMW, Mercedes-Benz and Audi decided to construct plants in Brazil, enticed by government decisions to raise taxes on imported vehicles and to offer tax breaks for carmakers hiking local investments. A representative from Jaguar Land Rover told Reuters that the carmaker is confirming a study on the installation of a manufacturing unit in Brazil.
The representative, however, did not provide details on the size of the investment or other details. One of the sources disclosed that talks commenced early this year, with Rio de Janeiro's state government offering tax breaks and fiscal incentives to entice Jaguar Land Rover. Land Rover sold 8,920 vehicles in Brazil in the first 10 months of 2013, trailing BMW and Mercedes-Benz, which sold 11,520 and 10,510 cars, respectively.