Tata Motors Plans China Foray & Three New Models For Jaguar Land Rover

The next couple of years are going to be busy for Jaguar and Land Rover, the two British brands bought over by the Indian Tata Motors in 2008. For starters, Tata Motors has committed to spending more than $1.5 billion in the two brands annually for the next five years. That money will go towards funding a new plant in China as well as to develop three new models.

Like the plant Tata Motors has planned for India, the China plant will begin with the assembly of certain Land Rover models—the Defender, Discovery and Freelander—using completely knocked down (CKD) kits imported from the U.K.. In time, the plant will also assemble Jaguar models, with an eventual target production level set at 40,000 vehicle units for both brands.

Setting up the plant in China could take time—up to two years—in addition to money and resources. But Tata Motors believes the ends justify the means as China is one of the fastest growing economies in the world, and has already displaced the U.S. as the number one car market. China accounts for a mere eight percent of Jaguar and Land Rover sales for 2009, leaving plenty of room for growth.

Local assembly in China will lower production costs and allow for Jaguar and Land Rover models to be more competitively priced in the Chinese market. Assembled cars can also be exported to Southeast Asian countries, which of course include Malaysia.

Of the three models, two come from Jaguar—a new sports car along with a new compact luxury sedan to succeed the Jaguar X-Type and rival BMW 3-Series—and one from Land Rover, most likely the upcoming Land Rove LRX.