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JLR to produce first car outside UK

Compact sport utility vehicle will be first of its cars to be manufactured outside its home market

Reuters 

Jaguar Land Rover
Jaguar Land Rover

Britain's biggest carmaker (JLR) said on Thursday it is to build its new E-PACE compact sport utility vehicle in and China, the first of its cars only to be manufactured outside of its home market.

said its three plants were either full or at near capacity but the decision will spark fears the firm is looking to boost its output by using overseas operations, rather than invest in greater capacity at home. The company, owned by India's Tata Motors, is rapidly expanding its levels and model line-up and decided in 2015 to build a major new plant in Slovakia, rather than expand its operations in

Like much of the car industry, is also worried that could leave its car facing lengthy customs delays and tariffs of up to 10 per cent, risking the viability of in

Austrian contract carmaker Magna Steyr, a unit of Magna International, and JLR's plant in China, which is a joint partnership with Chinese automaker Chery, will produce the E-PACE.

"With plans already in place to take Jaguar Land Rover’s three vehicle manufacturing plants in the close to their operating capacity, the creation of overseas manufacturing facilities delivers additional volumes needed to support the company’s future strategy," the firm said in a statement.

"It allows to offer its customers even more exciting new vehicles, to protect against currency fluctuations and to build a globally competitive business."

Magna will also produce the firm's previously announced first electric model, the I-PACE, from 2018, although has said it wants to build low-emissions vehicles in if certain conditions are met.

First Published: Sat, July 15 2017. 01:41 IST