Tata Motors to invest $1.6 billion more in UK's Jaguar Land Rover

Jaguar Land Rover will spend an additional £1 billion (Rs. 8,607 crore) with UK suppliers over the next four years to meet strong demand for the Range Rover Evoque.

That comes on top of £2 billion (Rs. 17,234 crore) worth of contracts awarded in March 2011 to over 40 UK suppliers for the Range Rover Evoque factory at Halewood on Merseyside. Jaguar Land Rover, which is owned by India's Tata Motors, says it has tripled the workforce at the Halewood plant, to nearly 4,500, over the last three years.

The company says it will also open a new logistics plant in Ellesmere Port, Cheshire, creating 300 jobs.  Over 60,000 Range Rover Evoques have been sold since the sport utility vehicle went on sale in September.

Earlier this month it was reported that Jaguar Land Rover is planning to expand its plant at Castle Bromwich to build new Jaguar models and overhaul the brand.  According to sources, JLR intends to invest around £200 million (Rs. 1,721 crore) on expanding the facility by 50 per cent.  The company will manufacture the new Jaguar F-Type sports car, the successor to the historic E-type, at the Castle Bromwich plant.

It is understood the investment in Castle Bromwich has been discussed with trade unions ahead of a vote on a new pay deal at JLR, it said. The expansion of the factory is a boost for the coalition Government, which is seeking to increase British exports and rebalance the economy, according to reports.