JLR's investment would follow BMW, Mercedes-Benz, and Audi in joining the Brazilian auto-production industry.

Government sources have tipped that Jaguar Land Rover (JLR) is to announce its new Brazilian factory investment on 3 December 2013, according to a Reuters report, although the company maintains that the decision is not final. The expectation is for the facility to be built in the city of Itatiaia and that production could begin as early as the 2015 calendar year. Itatiaia's mayor, Luiz Carlos Ferreira Bastos, was quoted as saying, "Everything is very advanced with only minor details to be worked out," and that employment is expected at 500-700 people. Reuters claims two additional, unnamed sources, with Rio de Janeiro's state government confirming that Land Rover plans to build in India. The automaker declined to confirm the size of the investment or other details around the study.
 

Significance: JLR has indicated a decision will be made on this possible new production facility by the end of 2013, so the announcement is expected. The report indicates an amount and suggested Land Rover production – expected as Land Rovers sell in higher volumes in the region than the Jaguar products. JLR's investment would follow BMW, Mercedes-Benz, and Audi to join the Brazilian auto-production industry, driven both by expected gains in the market and by a Brazilian tax structure designed to encourage domestic production, as well as research and development. Land Rover is the dominant brand in Brazil (8,037 units to date in September 2013 versus 168 for Jaguar, according to IHS Automotive sales forecast data). However, Land Rover's Brazil sales lag behind BMW and Mercedes-Benz, and the British brand offers only SUV products, while the others offer cars and SUVs. IHS Automotive forecasts production in Brazil to increase from 3.38 million units in 2013 to 4.04 million units by 2016, with continued growth thereafter.

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