Tata to build Jaguars and Land Rovers in China

Tata, which took control of Jaguar and Land Rover from Ford in 2008, is planning to move part of its manufacturing facilities for both makes to China, to cut production costs and keep Jaguar and Land Rover competitive in the Chinese market.

CEO of Tata Motors, Carl-Peter Forster, said that the company would begin by producing Land Rover models in China and that both brands would come to assemble as many as 40,000 vehicles a year in total there. "China is one growth market," said Forster, "We need to grow everywhere else as well. We need to grow in China, in Europe, South Africa, and South America. We have lots of growth markets."

The Chinese market accounts for 8 percent of Jaguar and Land Rover's sales, and is one of the fastest growing markets in the world. Setting up production in China could take up to two years, Forster said, and the models produced would likely only be sold locally in China or in other emerging economies in Southeast Asia.