Jaguar Land Rover aims to set up assembly plant in Brazil

Tuesday 17 July 2012, 12:27 PM by

In a bid to ensure greater penetration into the country endeavouring to be ranked as the world’s third largest market, Brazil, Tata Motors is intending to establish an assembly plant in the country. The multinational automotive group is deliberating the Brazilian government for setting up this plant designed to assemble Jaguar Land Rover’s compact crossover SUV, Land Rover Freelander.

Many international mass market players have established their plants at Brazil. However, the luxury automakers are aiming to enter the market owing to drastic surge in demand for premium vehicles and to bank upon the benefit arising from avoidance of high taxes levied on imported vehicles.

Freelander, the smallest and the least complex vehicle by Land Rover is planned to be assembled from the kits imported from U.K, which would enable JLR to render training facilities along with nailing its operations and booting sales volume.

Mr. Ralf Speth, Chief Executive Officer, JLR, was quoted as saying, "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 automaker marked its foray into India by setting up CKD (complete knock down) unit assembly plant and plans have been devised to follow the same trajectory for Brazil too before commencing full-fledged production.

In June this year, the sales recorded by Jaguar Land Rover rose by 39 percent with sales standing at 28,215 units as compared to the same month in 2011.

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