The new facility will have an annual production capacity of 40,000-45,000 units. It is learnt that it will start with the assembly of the DC 100 (new Land Rover Defender). According to a company official, import duties on cars in India are a dampener. So manufacturing in these markets will help.

As the Tata-JLR relationship progresses, there will be more localisation of JLR models here as well as sharing of platforms with Tata Motors. “We are looking at producing the platform for the new Defender in India, then modifying it so it can be shared with a Tata product,” said Ratan Tata, chairman, Tata Motors.

Under Tata Motors' ownership, JLR is gradually expanding its penetration in various markets and, more importantly, taking steps to be more competitive. The announcement last September about setting up its own engine manufacturing plant in the United Kingdom is an example. A similar plant is also being planned for India, which JLR chief Ralf Speth confirmed to the media at the Geneva Motor Show earlier this year.