Tata Motors is reportedly considering adding a Jaguar plant in Brazil, according to reports from India. "We are in discussions with the Brazilian government about the potential to manufacture there," Phil Popham, director of group sales operations at Jaguar Land Rover, told Business Line. The outlet reports that Popham says incentives, tax structures and import duties are part of the decision, as well as getting an understanding of the long-term benefits and opportunities. The company has already begun building a JLR plant in China, in partnership with Chery, to begin production in 2015. Further, Popham said that it is also looking at Saudi Arabia and said, "I don't think it will be an either-or. We could do both. It really depends on the business case. It could be neither, itI could be both of them."
Significance: Brazil's Inovar incentive programme is designed to encourage automakers to invest in the country, in terms of manufacturing and engineering and development, through tax incentives and tariffs on import vehicles. This programme, in combination with expectations for Brazil's future growth, has sparked a renewed interest in Brazilian production. Among the automakers who have recently confirmed new plants or expansions are Audi and BMW; Daimler has all but committed to getting back into passenger car production there as well. Tata has considered Brazilian production before, abandoning the idea a year ago. IHS Automotive forecasts Brazilian market sales at 4.52 million units by 2018, though production will lag behind sales at 4.36 million units.
