Jaguar Land Rover (JLR) has opened its first manufacturing plant in Brazil located in the state of Rio de Janeiro, according to a company statement. The Range Rover Evoque and Discovery Sport will be the first models built at the plant. JLR invested BRL750 million (USD215 million) in setting up the facility and an education business partnership centre. The plant will supply the Brazilian market and has the "most advanced emissions conformity and certification facility in South America", according to the automaker. Locally sourced components include the seats, cockpit, exhaust, chassis, and powertrain assembly. In its statement, JLR noted that Brazil is among the company's top 15 global markets, with 35 dealerships.
Significance: JLR's first production site outside the UK was a joint-venture plant in China, opened in 2014. The establishment of an education centre in Brazil indicates its long-term commitment to production in the region. "Our ambition is to encourage [students] to consider a career in the automotive industry in the future," said JLR executive director of manufacturing Wolfgang Stadier in a statement. Although JLR's statement indicated that its sales are up by 11% over the first five months of 2016, IHS Automotive data, as well as figures from Brazil national dealer association Anfavea, suggest its registrations slipped 4% year on year (y/y) to 3,354 units. Although Discovery Sport sales climbed from 121 units over the first five months of 2015 to 1,564 in the same period of 2016, sales of all other models are reported to have declined in the period. By 2021, the company estimates its production in Brazil will grow to about 16,000 units, up from a forecast 10,500 in 2016. IHS expects JLR's Brazilian production in 2021 to total 17,000 units, about 2% of its global output. Although Brazil's market is in such steep decline that it is not forecast to match its 2012 sales volumes of 3.63 million units until about 2027, producing here will boost JLR's sales by enabling competitive pricing through avoiding costly import taxes.
