Jaguar Land Rover, a unit of India's Tata Motors, is planning to set up a new assembly plant in Brazil to be able to tap into the market that is set to become the third largest in the world.
The multinational automotive group is holding discussions with the Brazilian government for establishing an assembly plant to assemble the premium brand's Land Rover Freelander model in the country. Jaguar Land Rover's compact crossover SUV will be imported from the kits imported from UK.
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."
Several leading automakers already have presence in the Brazilian market and premium carmakers are now increasing looking at the country to attract new customers in the emerging market. There has been a drastic increase in demand for luxury cars in the country in recent times. The luxury car makers are also looking to avoid heavy taxation that is imposed on imported vehicles by maintaining an assembly plant in the country.
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