Jaguar Land Rover has said that the new E-Pace crossover will likely be built in Austria and China, making the car, a first to be manufactured completely outside the home market.
The reason for this stems from the company’s three British plants being either full or nearing capacity. However, the decision may cause fears about the firm trying to boost output through overseas operations, instead of investing in further at the home base.
Owned by India’s Tata, JLR has been seeking an expansion of its production capacities and expanding its line-up. The company decided in 2015 about building a new major plant in Slovakia, instead of expanding its operations in Britain.
Magna Steyr, an Austrian contract automaker, a unit of Magna International, as well as JLR’s plant in China will be producing the E-Pace. The Chinese plant is a joint venture with Chinese automaker Chery.
However, the global production will help Jaguar Land Rover in offering the customers furthermore exciting new vehicles, protecting the company against currency fluctuations and in building a globally competitive business.
Magna has also been roped in to produce the JLR’s first electric model, the I-PACE, from 2018.